Racing Victoria announces $10m surplus despite COVID-19 crisis
Other professional sports have taken a massive financial hit during the COVID-19 crisis but Racing Victoria has reported a big surplus on the back of huge wagering growth between March and June.
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Victorian racing has continued to weather the COVID-19 storm after Racing Victoria posted a $10.7 million surplus for the 2019/20 financial year.
Racing in Victoria found a way to continue during the COVID-19 crisis that has shut down a large part of the state’s economy with only two meetings lost in March.
Crowds have been banned from attending race meetings since March 13 but punters still wagered a record $7.1 billion on Victorian racing.
Racing benefited from halts to the AFL and NRL seasons. Betting on Victorian racing was down 2.9 per cent from July 2019 to February 2020 but jumped almost 18 per cent between March 1 and June 30.
However, the betting return to RV dropped 2.4 per cent to $355.6 million for the season. But RV attributed the slight drop to the impact of the Point of Consumption Tax last year.
Government grants, prizemoney cuts for four months as well as cuts to board and executive salaries helped RV despite paying out more than $229 million in stakes in 2019/20.
“While racing has continued, all within our industry have made sacrifices and felt the pain, through temporary prizemoney reductions, staff stand downs and lost opportunities, to ensure that our industry is best placed to rebound out the other side,” Thompson said.
“The tough decisions made in the face of the pandemic and a better than expected wagering performance through Q4 mean that we have finished FY20 with a net operating surplus of $10.7 million, which is positive news for our industry.”
RV will continue to support clubs during the spring with a $15 million package provided to clubs to make up to for lost revenue during the peak spring period.
The latest package means RV has spent $32 million on support funding to clubs during the pandemic. However, RV’s financial position remains strong with more than $67 million remaining in the Industry Sustainability Fund after support payments have been made.
Thompson said the post-COVID future was unclear but RV would continue to take a cautious approach to managing racing’s finances.
“Punter engagement has remained very strong throughout the first quarter of FY21 with significant social restrictions still in place across Victoria,” Thompson said.
“Looking ahead, it is unclear what impact the easing of social restrictions and Government support will have on engagement and ultimately revenue, so we need to tread cautiously.”
Originally published as Racing Victoria announces $10m surplus despite COVID-19 crisis