Auckland Racing Club Announces 2008 Result

Media Release

23 October 2008

Auckland Racing Club Announces 2008 Result

Auckland Racing Club today announced that it had returned a surplus of $1,072,736 from operations for the year ended 30 June 2008. This compares to a surplus of $658,960 the previous year.

Total revenue increased by $3.060 million to $27.443 million, while operating expenditure increased by $2.647 million to $26.370 million. Depreciation increased by $122,000 to $1.087million. After depreciation, the net deficit for the year was $52,532, a significant improvement from the deficit of $439,997 in 2007 and a deficit of $1.316 million in 2006.

Auckland Racing Club Chairman, Bill Gianotti, said growth during the year has come from both racing and non-racing events and attributed the result to ongoing improvements to operational performance, a new taxation regime and highly successful season of racing.

"Significant progress has been made on improving revenue streams from key areas of the business such as the Ellerslie Event Centre, which recorded a record profit despite its $1 million investment in a comprehensive upgrade of the air conditioning system. Revenue was up $725,592 to $10,338 million and net contribution up $327,000 to $1.404 million."

Mr Gianotti also highlighted the Clubs commitment to raising stakes.

"This season we reached a historic milestone with total prize money exceeding the $10 million mark. Stakes and trophies increased by $1.852 million to $10.085 million. The Club's new Karaka Million Twilight accounted for $1 million of this increase and proved a very successful addition to the calendar."

"The success of the major racing events such as Lindauer Melbourne Cup Day and The New Zealand Herald Christmas Carnival made it possible for the Club to introduce a minimum stake level of $40,000 at Auckland Cup Week."

During the year a Heads of Agreement was signed with McConnell Property Ltd to develop the site located between the motorway and the Avenue of the Palms. The agreement is part of the masterplan to develop the Club's land holdings to realise considerable new and additional ground lease income streams.

Auckland Racing Club Chief Executive, Chris Weaver, said the Club was pleased with the result, which was achieved despite uncertainty generated by the Equine Influenza outbreak in Australia and inclement weather on key racedays.

"Our vision has always been to establish Ellerslie as a premier Australasian venue. We are well on the way to realising this. As we look to the year ahead, we can anticipate the most exciting season in the Club's history. For the first time we will stage three seven figure races - the $1 million Karaka Million, the $2.2 million Mercedes Derby and $1 million Stella Artois Auckland Cup."

ENDS

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