Victorian races recorded a net operating surplus of $10. 7 million in the last fiscal year despite monetary effects and headaches related to the COVID-19 pandemic.
Racing Victoria announced that it had paid a record amount of prizes during the year and incurred a massive build-up on the club’s monetary support.
The results for fiscal year 2019/20 that ended in June showed a strong contrast between the periods before and after the start of the COVID-19 pandemic in March 2020.
Detailing the effects on Monday, RV also announced that it had committed another $15 million as of October 2020 to special grants that will be shared among all Victorian racing clubs to ensure their continued viability in the absence of significant revenue from attendance and hospitality at this peak. spring operating period.
This commitment raises the additional monetary aid provided to Victorian racing clubs during the COVID-19 pandemic to approximately $32 million through special grants and nearly $5 million is invested in the club’s money-back position for the long-distance race at the Spring 2020 Carnival.
RV general manager Giles Thompson said the surplus would be for the racing industry as he faces the demanding COVID-19 situations that exist in fiscal year 2020-21 (FY21), where the state’s first annual racing event, Spring Carnival Racing, is taking place. without a crowd.
RV reported paying $229. 2 million in costs, a 4. 6% increase over the past year, and a 52% increase in the total amount of costs paid since fiscal 2014-15.
Year-on-year sales rose by 1. 1%, but revenue fell by 2. 4% due to the effect of the closure of the global game, from which racing takes a component, and other points such as the closure of TAB stores.
“Fiscal year 20 was a monetary year like no other with an exclusive occasion in a century that radically replaced the thoroughbred racing landscape in Victoria and even around the world,” Thompson said.
“Throughout the COVID-19 pandemic, our goals have been the aptitude of industry staff, participants and the community at large; maintain 25,000 full-time equivalent jobs in Victoria; and make sure that all thoroughbred racehorses can benefit from daily care and exercise.
“I am incredibly proud and grateful to everyone in the Victorian race for their cooperation and diligence to ensure the search for careers and education from the beginning of the pandemic and, therefore, this coming weekend we will have to organize our 2500th race under strict conditions biosecurity protocols.
“As careers continue, all members of our industry have made sacrifices and felt pain, through transient value cuts, layoffs and missed opportunities, to make sure our industry is the most productive to recover from the other side.
“Difficult decisions made in the face of the pandemic and better-than-expected functionality during the fourth quarter mean we ended the year 20 with a net operating surplus of $10. 7 million, which is good news for our industry.
“This surplus budget plays a huge role in helping the viability of Victorian races, helping the industry players who want them most, and offering more security in the face of the unknown long-term effects of the COVID-19 pandemic.
“Crowds have been banned from attending Victorian races for seven months and with the spring carnival in full swing, our racing clubs have lost their main source of investment. That’s why we invested an additional $15 million in our racing clubs this month, plus may $12 million and recharges announced in June.
“Despite the effects of the COVID-19 pandemic and mitigation initiatives, Racing Victoria has consistently paid record costs in fiscal year 20 and Victorian races have consistently generated record sales of more than $7 billion at the time of fiscal year.
“Before the pandemic, we saw that the effects of the entry point tax came into effect and contributed to a 2. 9% reduction in betting winnings, but the absence of other entertainment and discretionary activities resulted in a 17. 8% increase in winnings during the month of March. -June period.
“While profits rose by 1. 1% year-on-year, structural differences between the industry’s two major financing flows resulted in a 2. 4% minimisation in profits.
“The expansion of race profits during the COVID-19 era was not enough to offset the significant effect on the Victorian joint venture TAB, due to the continued closure of retail networks and the unavailability of domestic and foreign sports and racing products.
“The commitment of the punters remained very strong throughout the first quarter of fiscal year 21 with significant social restrictions still in force in Victoria. Looking ahead, it is not transparent what will have an effect on the easing of social restrictions and government aid will have on commitment and ultimately on income, so we will have to exercise caution.
That said, we’ve had an exclusive opportunity to expand the virtual engagement and audience of Victorian races this year and it will be vital for us to capitalize on those strong Exercise 21 numbers, either remotely or when crowds can safely return to the track.
“With wonderful uncertainty yet to come, we continue to strike a balance around ongoing investments in our sector to announce expansion and commitment by ensuring a prudent technique for monetary management.