ISC Vice Chair & CEO Lesa France Kennedy in a statement said, “We remain encouraged with our quarter and year-to-date financial results. … Our attendance revenue, which has been our principal risk, was down less than one percent for the quarter delivering results within our range of expectations and showing further signs of stabilization in our business."
Ticket revenue at ISC and SMI, the nation’s two largest racetrack operators, has declined by more than 40% since '07. ISC reported Q3 ticket revenue of $25.4M, a slight decrease from the $26M for the same period last year. Motorsports-related revenue, which includes broadcast rights and sponsorship sales, increased to $79.8M in Q3 from $77.9M last year. Expenses for the period rose 13% to $130M. The company lost $7.9M in the quarter because of costs associated with the sale of its Staten Island property and consulting costs for redeveloping Daytona.
OPTIMISTIC ABOUT THE FUTURE: ISC execs expressed optimism about the company’s future. TV rights account for more than 50% of the company's annual revenue and NASCAR’s recent 10-year, $8.2B rights agreements with Fox and NBC represent a significant increase from NASCAR’s current TV deals. ISC CFO Dan Houser said the company would receive $630M in TV revenue in '14, but NASCAR has not confirmed what it would receive when the NBC and Fox deals begin in '15. He added the company has “no concern" that NASCAR will change its current 65-25-10 split that gives 65% of TV revenue to tracks, 25% to teams and 10% to NASCAR. He also said that ISC’s portion of the 65% should not change. While TV rights will be the biggest driver in future revenue increases at ISC, the $400M redevelopment of Daytona also will lift annual revenue. The company said it expects the redeveloped Daytona, which will be completed in '16, to boost the track’s earnings before interest, taxes, depreciation and amortization from $20M to $35M. Houser said, “There’s a tremendous opportunity for the company to grow stronger as we continue to execute our strategic initiative, in particular Daytona Rising. … This will not only ensure our product remains relevant but take the company and sport to new heights." The company said it has sold 14 of 20 race entitlements for '14. Tripp Mickle, Sports Business Daily