SMI Cites Economy, Lower Ticket Prices As Reasons For Turning A Net Loss In '11
Challenging economic conditions and decreased ticket prices swung Speedway Motorsports Inc. to a net loss in '11. The company today reported a net loss of of $6.4M compared to net gain of $44.5M in '10. Its total revenues increased by $3.6M largely as a result of a $7M increase in event-related revenue, which includes sponsorship sales, suite rentals, merchandise sales and concessions. The company’s ticket revenue fell by $8.6M. SMI said the decline in admissions revenue reflected lower average ticket prices, and, to a lesser extent, fewer fans attending races. SMI’s largest revenue stream was the $185.4M it received in NASCAR broadcast money. The company said fans are waiting until closer to race dates to purchase tickets and added that it has developed promotional campaigns to encourage people to buy tickets earlier. Total expenses over the period increased by 13% to $487.9M on the year. SMI President & COO Marcus Smith in a statement said: “We are proud to report higher revenues for 2011 with almost four million fans attending our events despite tough economic times, and that television ratings increased significantly for NASCAR’s three largest racing series. Our full year 2011 results exceeded our expectations and reflect that our business is continuing to stabilize.” The company estimated '12 revenues will be $475-510M.