National wagering turnover on Tasmanian racing on a year-on-year basis increased by 8.4 per cent across all three codes in 2011/12 compared to the previous financial year, Tasracing’s annual report says.
Chairman Brian Speers said any increase in turnover was important as it delivered greater returns to the industry through race field fees and would ultimately assist to ensure the long-term sustainability of the industry.
“Race field fees increased from $3.2 million last financial year to $4.7 million in 2011/12 as a result of the increased turnover and a full year of collections,” he said.
“Under a new code funding model, industry received $23.5 million in industry funding and prize money.
“Previous allocations were not linked to commercial performance, which is important if the industry is to achieve sustainability with less reliance on the Tasmanian Government for funding.”
Mr Speers said unfortunately Tasracing recorded a loss of $10.4 million in 2011/12.
“An impairment expense of $5.7 million and a depreciation expense of $2.9 million were recognised in 2011/12,” he said.
“Increased workers’ compensation expenses, adoption of the Public Sector Superannuation Reform Act, application of the Long Service Leave (State Employees) Act 1994 and a change in the accounting treatment for the TasBonus scheme also impacted on the result.
“Our cash position reduced by only $670,000 because of non-cash charges and working capital improvements.
Mr Speers said the official opening of the $9.7 million all-weather, synthetic thoroughbred track at Spreyton by the Minister for Racing, Bryan Green, to coincide with its first thoroughbred meeting was a highlight for 2011/12.
This financial year was also the first full year of the operation of Stridemaster, the GPS tracking system for thoroughbreds that captures key performance statistics for all horses in all Tasmanian races.
Web traffic increased substantially compared to last financial year. In addition to Stridemaster, the website layout was enhanced, thoroughbred and harness form was included and race replays for all three codes were introduced.
This is consistent with Tasracing’s customer-focus strategy to ensure it is relevant to “digitally-savvy” customers.
France, one of the world’s biggest wagering markets, started receiving Tasmanian thoroughbred night racing from The TOTE Racing Centre through French wagering operator PMU. This opened up a new funding stream for the Tasmanian industry via overseas product fees.
Mr Speers said in a letter to the company Racing Minister Bryan Green had confirmed shareholder support to assist the company improve its financial position and performance.
“The letter confirms the government’s support for increased racefield fees, our approach to stricter cost management and, in consultation with industry, a review of industry roles and responsibilities that may identify efficiencies,” he said.
Mr Speers said Tasracing had continued to reduce costs where possible, including a decrease in marketing costs of $375,000 and other costs of $289.000.
“Robust cost control, effective capital management and improvements in operational efficiency will continue to be a priority in 2012/13,” he said.