Newcastle Racecourse has witnessed a remarkable rise in profitability as more spectators attend the races, despite economic pressures.
- The racecourse’s turnover increased significantly, rising from £20.3 million in 2022 to £22.2 million in 2023.
- Operating profits experienced a substantial leap, quadrupling from £478,069 to £1.97 million.
- The number of race meetings and events has expanded, contributing to the growth in revenues.
- Directors are optimistic about future prospects, highlighting increased disposable incomes and improved economic conditions.
Larger numbers of spectators are flocking to the races despite cost-of-living challenges, helping to drive up profits at Newcastle Racecourse, latest accounts show. Turnover rose from £20.3 million to £22.2 million and operating profit jumped from £478,069 to £1.97 million. This impressive financial performance comes after the pandemic-induced disruptions, signalling a return to normalcy in the racing calendar with 74 meetings held last year, up from 68 in 2022.
Directors at Newcastle Racecourse emphasised that the firm’s performance largely hinges on spectator numbers, which rely on disposable incomes and favourable weather conditions. The increased engagement from attendees, particularly during signature events like Ladies Day and the Northumberland Plate, has been a key factor in the financial turnaround.
Despite growing revenues, the Racecourse faced challenges with rising food and fuel costs. The Consumer Price Index (CPI) fluctuated significantly, falling from 10.1% at the beginning of 2023 to 4% by December, which pressured the UK leisure market. The directors stated that expenditure was tightly controlled, investing only in essential projects and regulatory obligations.
The company, part of the broader Arc Racing and Leisure Group, benefited from strategic funding sourced from group companies. Nevertheless, all outlays were scrutinised to ensure financial stability was maintained, enhancing the overall fiscal health of the operation.
The directors remain optimistic, citing an improvement in the cost of living and an expected increase in leisure spending as potential positive indicators for future growth. Their prudence in financial management and operational expansion marks a reassuring commitment to sustaining the current upward trajectory.
Newcastle Racecourse is well-positioned for future success, leveraging increased spectator enthusiasm and strategic financial management.
