13 December 2016
Boulogne-Billancourt, December 13, 2016 (Press release by France Galop)
The France Galop Comité has decided to maintain the level of prizemoney distributed in 2017 despite mixed results of the PMU and a net loss in the French racing Institution's 2016 results.
PMU turnover is down about 4.7% in 2016, which translates into an expected net profit of €790m. France Galop's income is down €33.5m, versus -€45.9m in 2015. That figure should shrink again in 2017 at -€ 28m, providing ongoing negociations lead to a favorable outcome.
PMU forecasts a moderate 1.2% growth on horseracing betting next year due to a rebound on the Internet (+ 5.5%) and on the International market (+ 5.9%). With better-oriented figures and stable operating expenses, the PMU's net result could be up € 4 million.
The 2017 France Galop budget incorporates the effect of the reforms undertaken on the racing program and the organization of fixtures as well as the implementation of a savings plan, including the transfer of Enghien jumps meetings, streamlined Marketing expenses and reduced operational costs. More efforts will be needed to guarantee a long term sustainable budget. Yet the directors of France Galop have chosen to maintain the prizemoney allocated at the level of 2016. This is a signal that they wished to send to the French world of racing at a crucial time for all stakeholders.
Edouard de Rothschild, President of France Galop, noted:
"At the current level and with a realistic stance on the years to come, France Galop is structurally losing about €30m per year. 2017 must therefore be put to good use with our partners LeTROT, the PMU and the French Government to set up a new business model for French racing. "