Speedway Motorsports loss widens on lower revenue, higher expenses, expects tough 2010

Speedway Motorsports 4Q loss widens

CONCORD, N.H. — Speedway Motorsports Inc. said Wednesday that its fourth-quarter loss widened as tough economic conditions depressed revenue from racing events and expenses grew.

The motorsports marketer, promoter and race track owner said a 31 percent revenue drop reflected declines in consumer and corporate spending and lower average ticket prices.

The company said it expects to have to reduce many ticket prices and use promotional campaigns “to help foster fan support and mitigate near-term ticket sales weakness” this year.

Even at that, it said revenue for 2010 may be down as much as 9 percent after a decline of nearly 10 percent in 2009. Its shares tumbled more than 7 percent.

Speedway lost $15.2 million, or 36 cents per share, in the three months ended Dec. 31, versus a loss of $4.8 million, or 11 cents per share, a year earlier.

Revenue dropped to $90.5 million from $130.6 million a year ago. The decline reflected lower admission sales, revenue from events and broadcasting revenue from NASCAR. A NASCAR race at an Atlanta track held in the fourth quarter of 2008 was also moved to the third quarter of 2009, helping to throw off the comparison.

Meanwhile, expenses rose 8 percent to $104 million. The company said some of the costs were related to its December 2008 purchase of the Kentucky Speedway.

For all of 2009, Speedway Motorsports lost $10.3 million, or 24 cents per share, versus a profit of $80 million, or $1.84 per share, in 2008. Revenue fell to $550.5 million from $610.9 million a year ago.

For 2010, the company estimates total revenue of $500 million to $533 million.

Its shares fell $1.20, or 7.5 percent, to $14.90 in afternoon trading.