RV eyes $14m profit, Flemington boasts $7.5m windfall

RACING Victoria is on track for a $14.4 million profit while the Victoria Racing Club is boasting a $7.5 million windfall.

Flemington enjoyed a bumper spring racing carnival. (Photo by Vince Caligiuri/Getty Images)

RACING Victoria is on track for a $14.4 million profit this financial year and the Victoria Racing Club is boasting a $7.5 million profit from last season's Flemington activities.

The good news from the peak racing body, however, is tempered with the acknowledgment that wagering revenue has flatlined and "industry revenue beyond the next three years will come under threat if current wagering trends continue and no innovation or change is enacted collectively by stakeholders."

The Herald Sun reported this week that Victorian racing faced a $20 million dip in turnover from its TAB share because of a 4 per cent loss of market share to the greyhounds and a shift by punters from the TAB to corporate bookmakers.

Nonetheless Racing Victoria announced yesterday that revenue is expected to increase by $1.3 million this financial year.

"Wagering nationally on Victorian thoroughbred racing over the past 12 months has grown only 0.1 per cent to $5 billion, with 44 per cent of bets now delivered via digital wagering," said Racing Victoria's chief executive Bernard Saundry.

"Corporate bookmakers and Betfair have grown their share of the national Victorian thoroughbred wagering market by 4.4 per cent over the past 12 months to 32 per cent," he said.

Racing receives 5.5c in every $ from the TAB but only 1.5c in every $ from corporates.

Saundry said a reduction of Victoria's 67 tracks was "too simplistic" to delivery significant cost savings but "we'll be undertaking a major review of the state's racing and training infrastructure over the next six months with stakeholders to formalise a plan on optimum track usage over the next decade."

He said that RV had made significant savings regarding staffing but that too would be reviewed

"to determine if there are further efficiencies to be made."

Meanwhile the VRC has delivered a record profit of nearly $7.5 million for the 2012/13 racing season, up from $2.4 million the previous year.

The profit allowed the club to fully repay its remaining $9 million bank debt. During the season the VRC invested more than $10 million in racecourse improvements, and increased returns to owners, paying more than $36.4 million in prize money.

The strong financial performance was achieved through increasing revenue to $150.5 million, up $7.2 million or five per cent, a highly successful 2012 Melbourne Cup Carnival and reviewing costs with considerable savings.

According to the VRC annual report, race day catering, dining, hospitality and outdoor events generated $46.5 million in revenue, public ticketing $14 million, and marketing, sponsorship and broadcast rights a further $23.1 million. TAB distributions added $30.5 million and membership revenue contributed $17.9 million.

VRC Chairman Michael Burn said that all of the profits are being reinvested into the club to benefit its 30,000 members, racing participants and visitors to Flemington.

He said the club now would concentrate on a new Members' grandstand.