Longer Racing Season Lifts Canterbury’s Revenue
Canterbury Park Holding Corporation announced Thursday that extra racing days helped boost revenue for its most recent quarter, but profits dipped.
Canterbury Park in Shakopee hosts live horse racing, card casino games, and a live simulcast of horse races across the country.
Canterbury announced that net earnings for the third quarter, which ended September 30, totaled $170,503, or $0.04 per share, down about 15 percent from $202,034, or $0.05 per share, during the same period in 2012.
Revenue, meanwhile, totaled $14.3 million, up about 3 percent from $13.9 million in the third quarter of 2012.
President and CEO Randy Sampson said revenues over the last nine months compared especially favorably to 2012 due to an extended 69-day racing season, the track’s longest since 2006. Net earnings for the last nine months increased by about 15 percent and revenue went up 3.5 percent.
For the third quarter, the company said it hosted six additional days of live racing. In the same quarter, the company saw a 15 percent increase in food and beverage revenues, which was offset by a 5.5 percent decrease in card casino revenues, compared with the same period in 2012.
“We believe both racing and card casino revenues were adversely impacted in the third quarter of 2013 due to significant road construction in our area,” Sampson said in a statement.
Sampson also said the track continues to see benefits from a joint marketing agreement it made in June 2012 with the Shakopee Mdewakaton Sioux Community—who own and operate Mystic Lake Casino Hotel.
The agreement bumped up the winning purse total for Canterbury track horse owners, trainers and jockeys, by $75 million over the 10-year lifespan of the agreement. This led to a record-setting $12.5 million doled out in purse money this season, nearly doubling the 2011 purse and about 27 percent more than last year.
“The 2013 increases in purses attracted new stables and better quality horses, which fueled increased fan support for our 2013 live race meet,” Sampson said.
Shares of Canterbury’s stock were trading up about 3.6 percent at $10.65 during late Thursday morning trading.