Following its Annual General Meeting (“AGM”), The Hong Kong Jockey Club (“the Club”) revealed its results for the 2023/24 monetary year ended 30 June 2024 (FY2023/24).
The Club dealtwith substantial external difficulties throughout the year, consistingof the challenging macro-economic environment, the increasing risk of prohibited gaming and increasing competitors from Macau gamblingestablishments. Above all, a basic post-pandemic shift in customer behaviour in favour of brand-new digital experiences and outgoing travel affected race-going and racing betting. In effect regional racing betting turnover for the racing season (10 Sep 2023 – 14 Jul 2024) was down 9.3%.
This decrease was partially alleviated by the Club’s method to globalise its racing and construct an abroad client base, with commingled turnover on Hong Kong racing up 13.7% to HK$28.8 billion (approx. £2.8 billion), consistingof 23.7% of regional racing turnover for the season.
Furthermore, through the World Pool the Club is leveraging combining and simulcasting to make Hong Kong the worldwide center for betting on the world’s top races. With an extra 83 leading abroad races last season, overall turnover on simulcasting and the World Pool was up 8.7% to HK$12.8 billion (approx. £1.2 billion).
Nonetheless, the success of combining, simulcasting and the World Pool was not adequate to balancedout the decrease in regional racing turnover. As a result, total racing betting turnover for the season was down 4.5% to HK$134.7 billion (approx. £13.1 billion) and for FY2023/24 down 3.1% to HK$136.1 billion (approx. £13.3 billion).
Football turnover, nevertheless, accomplished a record high of HK$160.3 billion for FY2023/24, up 2.2%. Here extra components, the intro of 24-hour operations, an boost in In Play offerings, as well as ingenious brand-new items like Same Game All Up and Early Settlement, all assisted increase turnover and counter unlawful markets. However, with the Club paying an extra HK$2.4 billion in Special Football Betting Duty per year for 5 years beginning from April 2023, earnings from football was down 16.6% to HK$8.1 billion.
Mark Six efficiency was likewise favorable, with improvements to the prize reserve design makingitpossiblefor the Club to deal more and greater prizes. In repercussion, Mark Six turnover for FY2023/24 was up 13.3% to HK$8.5 billion.
As a result, and inspiteof the numerous obstacles of the year, the Club’s overall turnover for FY2023/24 was basically thesame at HK$304.9 billion (approx. £29.8 billion). Net margin, nevertheless, was down 10.5% to HK$14.8 billion, mainly showing the full-year effect of Special Football Betting Duty of HK$2.4 billion.
Even with this lowered earnings, the Club was nevertheless figuredout to keep its strong assistance for the neighborhood, contributing a record HK$40.1 billion (approx. £3.9 billion). This consistedof a record HK$29.9 billion (approx. £2.9 billion) in wagering responsibility, revenues tax and Lotteries Fund contributions, and HK$10.2 billion (approx. £996.2 million) in authorized charity contributions – likewise a brand-new record.
Reflecting on the year, Club Chairman Michael Lee enhanced the Club’s dedication to satisfying its function of acting for the improvement of our society, “The Club will continue to invest and, if required, make usage of its reserves, both to makesure the Club’s long-lasting future and to support our dedication to the neighborhood.”
Club CEO Winfried Engelbrecht-Bresges stated:
Looking back over the past year I am when onceagain struck by the massive strength of the Club. Having taken whatever that the pandemic had to toss at us, we have had to compete with an incredibly challenging macro-economic environment as well as substantial modifications in client behaviour as they lookfor out brand-new experiences online or in outbound locations. Despite this, the Club has continued to provide exceptional racing homeentertainment and the greatest assistance for our neighborhood.
Global racing quality
From a racing pointofview the past season was one of the finest ever, with Hong Kong inviting 32 overseas runners from 5 nations to its flagship Longines Hong Kong International Races and FWD Champions Day. Against this worldwide competitors Hong Kong horses swept 3 of the 4 Hong Kong International Races and all 3 races on Champions Day.
Perhaps even more remarkable were Hong Kong’s 3 Group 1 success overseas. California Spangle took the Al Quoz Sprint in Dubai, while Romantic Warrior endedupbeing the veryfirst Hong Kong winner of Australia’s W.S. Cox Plate before recording Japan’s Yasuda Kinen – the 3rd Hong Kong horse to win the race.
The quality of Hong Kong racing was showed in the world rankings. For the veryfirst time, all 12 of the Club’s Group 1 races included in the World’s Top 100 Group 1 Races and 4 Hong Kong horses were in the leading 15 of the World’s Best Racehorse Rankings. This is an exceptional accomplishment provided that Hong Kong has less than 1% of the world’s thoroughbreds in training.
Strengthening the Club’s first-rate racing and customer-centricity
Mindful of the chances in the international market, however likewise of the requirement to enhance its conne