Companies: ARE   

Racecourse operator Arena swallowed a hefty non-cash write-off following the demise of its attheraces media rights joint venture, taking pre-tax losses for 2003 to £42.2m (£6.9m). Turnover increased 5% to £34.3m, with operating profits, pre-goodwill amortisation and exceptional items, leaping 48% to £6.4m, reflecting the healthy position of its six racecourses. Arena has won a five year contract for the provision of pictures to UK bookmakers, starting in January 2005 and with anticipated UK gambling deregulation, it has also gained local planning permission to create the first integrated sporting, leisure and gaming destination. It intends to build a casino and double the size of the hotel at its Wolverhampton racecourse to 106 bedrooms. Approval from the Government office is awaited. With the termination of the attheraces media rights agreement with 49 of the UK's racecourses in March, Arena wrote-off all values attributable to attheraces. It has teamed up with BSkyB to re-establish the business by putting forward new proposals that facilitate rights payments directly attributable to revenues that racecourse rights generates. Attheraces would still be free to Sky's seven million subscribers. The deadline for acceptance is 21 May. Meanwhile, attheraces is pursuing contractual rebates of up to £50m (Arena is entitled to 33%) due from the racecourses. Broker Seymour Pierce is forecasting pre-tax profits £2.3m for 2004, excluding any outcome from attheraces. The shares rose 7.74% to 41.75p. Hold.