Arena Leisure upbeat despite levy shortfall

1st Aug 2011 12:49

Shares inArena Leisure raced ahead after the racecourse operator lured in more punters in the six months to 30 June, though pre-tax profits were lower due to reduced revenues from levies from bookmakers.Pre-tax profits were down to £1.4m from £2m over the same period the previous year. Excluding levy income, revenues were up by £3m at £22.5m, but including levy income were down by £1.9m to £28.2m.Arena operates seven racecourses, including Doncaster and Royal Windsor. It is also going to be providing catering services for equestrian events at next year's London Olympics. Racecourses receive levies that are imposed on bookmakers, but the total amount for 2011/12 is much lower than the racecourses had been hoping for. Arena said it has been participating in discussions with the government over how to remedy "structural deficiencies" in the levy system."Despite the challenging back drop of reduced industry funding and the slow economic recovery, the consumer-driven operations of Arena's business have performed exceptionally well; most notably, posting attendance growth of over 11% in the period," Arena chairman David Thorpe said. "Our trading performance since 30 June 2011 is in line with the company's expectations." ---RG