Major races attract substantial crowds, leading to dividend payments for Newbury.
Fresh Take:
Newbury Racecourse, the British horse racing and musical event venue, is doling out a final dividend to its investors after raking in higher profits last year. The racecourse didn't distribute dividends in 2023 due to significant investments in facilities and prize money.
The board of Newbury Racecourse is suggesting a 6p-per-share payout to shareholders this time around. In 2024, the racecourse recorded an impressive 16.3% surge in turnover, reaching £22 million, thanks to increased attendances and a new media rights deal.
Revenue from horse racing alone grew by £2.4 million to £17.7 million, with nearly 134,000 racegoers filling the stands—despite one meeting getting called off due to inclement weather.
Newbury's flagship flat racing event, the Lockinge Stakes day in May, drew in over 9,600 attendees, a 15% increase from the previous year. Furthermore, the two-day Coral Gold Cup steeplechase meeting saw a whopping 11% attendance boost, with approximately 17,600 spectators.
Newbury's financials also benefited from a new five-year media rights agreement with Arena Leisure/Sky Sports Racing, which pumped up media rights income from £5.2 million to £8 million. Despite an increase in total prize money of over £1 million to £6.9 million, Newbury's operating profits still soared by about 75% to £857,000.
Chairman Dominic Burke pointed out that the increased prize money came in a particularly challenging cost inflation environment. Newbury's costs swelled by 11% to £21.1 million due to inflation, higher utilities expenses, and the National Minimum Wage adjustments.
Looking ahead, Newbury Racecourse plans to hike prize money even further this year, with funds earmarked for the Hungerford Stakes and Mill Reef Stakes in August and September, respectively. In addition, the venue will host four 'Party in the Paddock' music concerts this summer and autumn, featuring various popular artists like Sophie Ellis-Bextor, Ella Henderson, and James Bay.
Historically, renowned musicians like Sir Tom Jones, Sir Rod Stewart, Madness, Simply Red, and The Beach Boys have taken the stage at Newbury Racecourse. Back in July 2023, over 13,500 spectators enjoyed a stellar performance by rapper Dizzee Rascal, following the BetVictor Hungerford Stakes.
- The final dividend distribution to investors at Newbury Racecourse, amounting to 4million pence in total, highlights the racecourse's successful investing strategy in their facilities and prize money.
- In the business of sports, increased attendances at race events and the addition of new media rights deals, like the one with Arena Leisure/Sky Sports Racing, have been significant factors in boosting Newbury Racecourse's dividends.
- The Lockinge Stakes day and the Coral Gold Cup steeplechase meeting were major highlights in the racing schedule, drawing large numbers of goers and enhancing the racecourse's financial position.
- As part of its ongoing commitment to the sport of horse racing, Newbury Racecourse has announced plans to increase prize money for events such as the Hungerford Stakes and Mill Reef Stakes in the coming year.
- Beyond horse racing, Newbury Racecourse boosts its appeal as a multi-faceted venue by hosting music concerts, with renowned artists like Sophie Ellis-Bextor, Ella Henderson, and James Bay set to perform during the Party in the Paddock series this summer and autumn.
