Tasracing on sustainable financial footing

Thursday 27 October 2016

The Hodgman Liberal Government is committed to a vibrant and sustainable racing industry in Tasmania.

Today, the Tasracing annual report shows that Tasracing is operating on a sustainable financial basis for the first time since it was established in 2009.

Resolving this issue of sustainability, and establishing and implementing a road map to a sustainable position, has been the focus of the Tasmanian Government and the Tasracing Board.

Immediately after the reset announcement, Tasracing developed and implemented a plan to deliver an annual saving of $3 million.

The annual report shows that wagering turnover remained steady at $472 million and race field revenue increased by 30 per cent to $9 million in 2015/16.

As a result of the sustainability measures introduced, together with Tasracing’s continued disciplined financial management, the company recorded a modest profit of $0.18m in 2015/16 (compared with a loss of $1.2 million in 2014/15).

The company now has a sustainable business model and cash reserves of $12.3 million which places it in a favourable position to invest and grow the industry.

Tasracing plans to introduce a 4 per cent stakes increase per year until 2020, subject to business performance, and there will also be a significant investment in state-wide infrastructure – $43 million over the next five years.

Tasracing also announced a 10 year media rights deal with Sky racing which confirms confidence in the industry