The Hong Kong Jockey Membership (HKJC) has reported a notable drop in earnings for the fiscal 12 months ending 30 June 2024, totaling HK$14.8 billion (US$1.90 billion), a ten.5% lower from the earlier 12 months. This decline is essentially attributed to an elevated responsibility on soccer betting and a fancy macroeconomic panorama.
Challenges in racing and betting:
The membership has confronted a large number of challenges that contributed to a 9.3% lower in native racing turnover, with competitors intensifying from Macau’s casinos and the pervasive problem of unlawful playing. Regardless of these hurdles, the general turnover remained secure at HK$304.9 billion (US$39.1 billion).
Soccer betting, whereas reaching a file turnover of HK$160.3 billion (US$20.6 billion) this 12 months—a rise of two.2%—noticed its earnings considerably decreased by 16.6% to HK$8.1 billion (US$1.04 billion). This discount was on account of a further HK$2.4 billion (US$308 million) in soccer betting duties imposed through the fiscal 12 months.
Horse racing turnover additionally skilled a downturn, dropping 3.1% year-on-year to HK$136.1 billion (US$17.5 billion). This decline displays broader market challenges and shifts in shopper habits, with a rising desire for digital and journey experiences post-pandemic.
Innovation and group contributions:
On a brighter notice, the Mark Six Lottery noticed a 13.3% enhance in turnover to HK$8.5 billion (US$1.09 billion), due to enhancements within the jackpot reserve mannequin. These changes have allowed HKJC to supply extra substantial jackpots, attracting better participation.
Regardless of the monetary setbacks, HKJC made vital contributions to the group in FY24. It donated a file HK$40.1 billion (US$5.14 billion) to numerous causes, together with HK$29.9 billion (US$3.84 billion) in betting duties, earnings tax, and Lotteries Fund contributions, together with HK$10.2 billion (US$1.31 billion) in authorised charity donations.
Management perspective on resilience and future outlook:
As Inside Asian Gaming experiences, HKJC’s CEO, Winfried Engelbrecht-Bresges, mirrored on the challenges confronted over the previous 12 months, emphasizing the membership’s resilience. “Having taken the whole lot that the pandemic needed to throw at us, we’ve needed to take care of an especially difficult macro-economic setting in addition to vital modifications in buyer habits as they search out new experiences on-line or in outbound locations,” he mentioned.
Regardless of these challenges, Engelbrecht-Bresges praised the membership’s capability to proceed delivering distinctive racing leisure and sturdy assist for the group. He stays optimistic in regards to the membership’s capability to adapt and thrive within the altering panorama.
