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RACING AUSTRALIA ANNUAL REPORT 2016
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OPERATIONS CHIEF EXECUTIVE
OFFICER'S REPORT
1. FINANCIALS
The 2015-2016 financial year completed the first full
financial year of Racing Australia operations following
the purchase of the Australian Stud Book, Australian
Genetics Testing and the merger of the Australian
Racing Board and Racing Information Services Australia
to form Racing Australia Limited in April 2015.
In the previous financial year (2014-2015) the revenue
and costs of the Australian Stud Book and Australian
Genetics Testing were included for nine months only.
The costs of the Australian Racing Board were included
for three months of the 2014-2015 financial year only.
For the full twelve months of the 2015-2016 financial
year consolidated revenue increased by $416,541 from
$12,658,325 in 2014-2015 to $13,074,866 in 2015-2016.
Excluding extraordinary revenue of $1,000,000 in
2014-2015 from the settlement of the McHugh Artificial
Insemination case, the actual full year increase in
consolidated revenue was $1,416,541.
Consolidated expenses increased by $220,820 from
$9,917,991 in 2014-2015 to $10,138,811 in 2015-2016.
Racing Australia’s consolidated surplus for the year was
$2,936,055.
For the full financial year revenue from combined
commercial activities (Copyright Licence and Supply
Agreements, Publishing and Connect) represented
33% ($4,332,308).
Whilst revenue from Copyright Licence and Supply
Agreements, and Connect grew, revenue from
publishing represented 2% ($311,400) of total revenue.
This small decrease of $34,142 in publishing is the result
of fewer racebooks being published by race clubs
leading to a decline in pre-press racebook services
being delivered by Racing Australia.
Prior to this financial year despite global trends of print
publications pre-press performed against this trend
with Racing Australia expanding its services through
investment in infrastructure and people to provide
more customisable racebook options. The decline now
starting to be experienced in 2015-2016 is expected to
continue in future years as more and more race clubs
transition from established racebook print to alternative
print or digital solutions.
To offset the expected decline in print, Racing Australia
has continued to innovate and provide a range of low
cost print and digital solutions.
Industry based bureau services including the Trainers
& Racing Service Centre responsible for nominations
and acceptances for all race meetings across
Australia (excluding Western Australia) was static at 8%
($1,109,357). The Registrar of Racehorses (responsible
for the registration and naming of all thoroughbreds)
was also static at 12% ($1,543,861) of Racing Australia’s
revenue.
The Australian Stud book and Australian Genetics
Testing revenue increased from 27% ($3,353,631) for the
nine months of 2014-2015 to 38% ($4,947,706) for the
full twelve months 2015-1016.
Connect revenue (an SMS and email communications
portal used by race clubs and other industry participants
to communicate with members, owners etc) represents
2% ($248,634) and other revenue represented
5% ($581,600) of total 2015-2016 consolidated revenue.
With the SNS project nearing its conclusion, consolidation
of the merger completed, consistently strong financial
performance and service standards exceeding targets,
Racing Australia is well positioned for continued innovation
and financial growth.
Myles Foreman,
Operations Chief Executive Officer