HRI announce six month stats

The six month figures for the horse racing and breeding industry in Ireland published by Horse Racing Ireland today show signs of recovery in some areas, but overall they reflect an industry that remains under very serious pressure.

The positive trends were a 30% increase in bloodstock sales at public auction, a 20% increase in Tote betting and a 3% increase in average attendance at racemeetings.

On the other hand, the number of horses returned in training showed a 14% decrease compared to the same period last year, on course bookmaker betting fell by 10% and race sponsorship by 8%.

Brian Kavanagh, Chief Executive of Horse Racing Ireland (HRI) said “With prize money down by a further 5% (€1.1m) to date this year and 25% in total since 2008, a decline in entries and runners was inevitable. However the 14% fall in the number of horses in training for the first six months is very worrying as this has a direct impact on employment levels throughout the country.”

Kavanagh continued “The increase in bloodstock sales at public auction was largely driven by overseas purchasers which represent a vital source of inward investment to the Irish economy. Whilst encouraging, it should be noted however that the largest number and most valuable of the bloodstock sales take place in the second half of the year.

"Given the reduced fixture list for 2011 which was announced last year, the total number of fixtures and races were always going to be down. Against that background, the increase in average attendance at racemeetings is encouraging and reflects credit on the efforts of racecourses to offer value for money packages and added entertainment. That said, the economic environment is providing a major challenge for racecourses in attracting racegoers.

"Initiatives such as student days at Cork and Limerick, combined with good performances at the major Festivals at Fairyhouse (up 4,400) and Punchestown (up 1,600) contributed to a welcome increase year on year. The tracks in the West of Ireland continue to perform particularly strongly.

"The level of new owners registered shows a marginal drop on last year, but in the circumstances, this is a satisfactory outcome. A number of these new owners are overseas based, including from some of the developing bloodstock markets of China, Russia and the Middle East.”

On the betting front, Brian Kavanagh said “Tote turnover has been significantly boosted due to increased international co-mingling with betting on Irish pools up by 24% year to date. While this is lower margin business, combined with significant cost cutting measures, it means that the Tote is on target to provide an increased return for Irish racing this year.

"On course bookmaker betting remains under extreme pressure, showing a 10% decline on last year. The reality is that the on course market is finding it increasingly difficult to compete with the tax free offshore alternatives and until a proper licensing and taxation arrangement is put in place for these platforms, that will remain the case.”

Despite the difficulties of the industry off the track, Irish horses, trainers and riders continued to enjoy high profile international success during the period. In the National Hunt arena, there was a record breaking 13 Irish trained, 15 Irish bred and 22 Irish ridden winners from the 27 races at Cheltenham, while on the Flat Aidan O’Brien has already captured 8 Group 1 races internationally and currently heads the leading trainers championships in both Ireland and Britain. Eddie Lynam, Tommy Stack and Jim Bolger have also had Group race success in England.

In conclusion, Brian Kavanagh stated “If there is a theme running through these figures, it is that international interest in Irish racing and breeding remains strong, but the domestic sector is under enormous pressure. The industry has suffered a series of cutbacks in recent years and urgently requires a long term funding solution which is not dependent on Government grants.

"HRI believes that the Horse and Greyhound Racing Fund can be and should be fully funded from betting duty and is working with the Government to achieve this through a meaningful levy on betting across all platforms. We should not have the situation where a betting industry with annual turnover of more than €4.5bn generates betting duty of less than €30m, whereas 20 years ago, when turnover was just €370m, duty was €37m.”

Total Fixtures 150 154 -3%

Total Races 1060 1095 -3%

Total Prize Money €20.45m €21.54m -5%

Total Sponsorship €2.06m €2.23m -8%

Total Attendance 497,467 496,305 1%

Avg. Attendance 3,316 3,223 3%

Total Horses In Training

(Jan to June) 8,217 9,597 -14%

Total Entries 31,172 33,711 -8%

Total Runners 14,053 14,219 -1%

Total Individual Runners

Average Runners Per Race

Total On-Course Bookmaker Betting

€49.5m €55.3m -10%

Total Tote Betting

€24.8m €20.7m 20%

Tote Betting Irish Pools

€21.5m €17.3m 24%

Tote Betting Overseas Pools

€3.3m €3.5m -6%

Bloodstock Sales at Public Auction

€20m €15.4m 30%

New Owners Registered