Racing Victoria posts $11.8m deficit for 2023/24 financial year

Racing Victoria has announced an eight-figure loss for the last financial year but says the result was better than initially forecast.

Racing Victoria reported an $11.8m deficit for the last financial year but says the result was better than expected.

RV released its annual report on Wednesday, noting the eight-figure deficit after reporting a surplus for the 2022/23 financial year.

The organisation noted one-off costs such as those relating to the Southside Racing merger between the Pakenham and Cranbourne clubs comprised most of the deficit.

RV reported the “underlying net deficit” the sport incurred was $3m, a much better result than that $12.1m deficit in earlier budget projections.

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Betting turnover was down 10.2 per cent to $7.9bn, down from the Covid-driven peak of $9.1bn in 2022 but above the pre-Covid level of $7.1bn.

RV noted cost of living pressures, higher interest rates, competition from other sports and government measures affected wagering levels.

However, RV reported higher than expected revenue from wagering service providers, reporting a one per cent increase to $364.4m for the 2023/24 financial year.

RV reported a 3.1 per cent drop in overall revenue from operations to $536.8m, largely due to the closure of government funding for programs during the transition to a new funding model.

RV cut $7m in operating expenditure during the last financial year.

Chief executive Aaron Morrison said Racing Victoria was still in a strong financial position despite the deficit.

“After 11 consecutive surpluses, we budgeted for a deficit in FY24 given changing dynamics around the industry funding framework and Australia’s wagering market,” Morrison said.

“The net underlying result has been better than forecast.

“Through sound management over an extended period our net asset position is $185.4m which means that the business is well placed to absorb this planned deficit in the short-term.”

Morrison said RV remained focused on streamlining the industry’s costs during the current financial year.

Originally published as Racing Victoria posts $11.8m deficit for 2023/24 financial year