SMI Admission Revenue Down In Q2; Total Revenue At Nearly $250M
SMI’s admission revenue through the first half of the year is down 7%, mainly attributable to NASCAR’s attendance erosion that has not yet abated. The track operator is in the process of going private and likely only has a couple public earnings reports left to release. It released Q2 earnings today, but the focus of the report was largely on the year-to-date figures because there were events that changed from Q2 last year to Q1 this year. SMI’s first six months included NASCAR weekends at Atlanta, Las Vegas, Bristol, Texas, Charlotte and Sonoma, plus several NHRA events and one IndyCar race. For the six months ended June 30, SMI’s admission revenue was $33.6M, down from $36.3M last year. SMI’s other revenue streams were stable to up, including event-related revenue (like sponsorship), which was up 5%; media-rights revenue, which is by far its largest revenue stream at $128.6M (up 4%); and the track operator’s “other” category, which counts non-NASCAR/NHRA race activities (up 2%). SMI President & CEO Marcus Smith on the call said all of the company’s entitlements in NASCAR’s three national series are sold for this season “and many are for several years to come.” The total revenue was $249.8M, which compared to $214.8M spent on expenses. SMI also took a $9M charge on income taxes, leaving it with a profit of $25.9M for the last six months. At presstime, SMI shares were trading at $19.80, flat from yesterday.