|Less seats and still no sellouts = lower profits for ISC|
International Speedway Corp. ISCA, -4.94% reported surprise total revenue growth in its second quarter, though profit declined from a year ago as the racetrack operator's admissions revenue fell.
International Speedway operates 13 of the nation's major motor sports-entertainment facilities, including the Daytona International Speedway in Florida, home of the Daytona 500. The company also runs independent sports radio network Motor Racing Network.
"While we experienced attendance related revenue challenges at some events, we remain confident that our consumer marketing initiatives are working and positioning ISC for continued growth," said Chief Executive Lesa France Kennedy, adding that overall revenue was up on contracted broadcast rights increases and strong corporate partnerships.
For the three months ended May 31, revenue related to motor sports — the biggest contributor to the company's top line — rose 5.1% to $121 million. Admissions revenue declined 8.4% to $30.5 million, while food, beverage and merchandise sales dropped to 11% to $10.3 million.
Over all, International Speedway posted a profit of $21.9 million, or 47 cents a share, compared with $13.4 million, or 29 cents a share, in the year-earlier period. Excluding one-time items, such as the sale of its Staten Island property during the period, earnings declined to 29 cents a share from 35 cents a share a year ago.
Revenue increased 2.2% to $167.6 million. Analysts polled by Thomson Reuters had expected profit of 32 cents a share on revenue of $163 million.
The company also narrowed its prior full-year outlook. It now sees total revenue in 2016 in a range from $658 million to $665 million, compared with a prior estimate of $660 million to $670 million. For full-year earnings, the company now expects $1.45 to $1.55 a share, compared with an earlier range of $1.45 to $1.60. Analysts anticipate $1.55 a share on $666 million in revenue.