SBD/March 6, 2013/Finance
SMI's Total Revenues Drop In '12 Due To Ticket Sales Declines, Loss Of Infineon Sponsorship
Declines in ticket sales, the loss of Infineon’s naming-rights deal in Sonoma and a reduction in Sirius’ radio rights fees pushed SMI’s total revenues down 3% in '12. The company still managed to generate a profit, largely because of a one-time loss of $48.6M it recorded in '11. SMI saw its admissions revenue decline 11% to $116M, and event-related revenue decreased from sponsorship, hospitality and other areas by 7% to $151.6M. Broadcast revenue increased 4% to $192.7M. The company reduced its costs 3% to $426.5M when excluding a one-time impairment charge it took last year related to its '07 purchase of New Hampshire Motor Speedway. SMI President & CEO Marcus Smith said that some of the company’s eight NASCAR tracks saw attendance increases but “some markets are taking longer to recover than initially anticipated.” The company still has to sell a Sprint Cup race sponsorship in New Hampshire as well as some Nationwide Series races. Smith said, “Our corporate sales team has a little more work to do to retain these last event entitlements, but we remain encouraged and positive.” The company projects relatively flat revenue in '13 of $480-510M.
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