SBD/Issue 38/Finance

SMI Q3 Revenue Down 8.5% From Last Year Due To Spending Declines

Speedway Motorsports Inc. today reported Q3 revenue totaled $123.2M, down 8.5% from a year ago because of continued declines in consumer and corporate spending. Total revenues for the year to date are $419.3M, down 8.8% from the $460M generated through the same period in '09. Ticket revenue totaled $39.6M in the third quarter, 13.5% less than a year ago. A total of 64% of the ticket revenue decline was because of decreases in ticket prices during the third quarter. The balance of the revenue decline stemmed from attendance decreases. Event-related revenue totaled $36.4M in the same period, a 10.8% declined from '09. Total ticket revenue this year is $117.8M, down 15.6% from the same period in 2009. SMI President & COO Marcus Smith in a statement said, "Although our 2010 results reflect that tough recessionary conditions continue, the interest of current and prospective corporate marketing partners for SMI's next season suggest they may be bottoming."

MY NEW KENTUCKY HOME: SMI is planning a capital expenditure of $40M to improve Kentucky Speedway ahead of its first Sprint Cup event in '11. The investment will help increase capacity to more than 100,000 seats, enhance parking and improve camping facilities. The company has not sold an entitlement for the race at Kentucky yet.

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