Speedway Motorsports reports 34% drop in profits

Wednesday, May. 06, 2009

Speedway Motorsports, which owns Lowe's Motor Speedway and other major NASCAR tracks, this morning reported a first quarter 2009 profit of more than $20.3 million, down 34 percent from a year earlier.

Total revenues for the Concord-based company were less than $133.6 million, down 14 percent. Admissions revenues fell almost 13 percent, while event-related revenue dropped nearly 24 percent.

Speedway Motorsports venues held five major NASCAR races in the first quarter, compared with six in the same period for 2008. The company also cited the recession and a pullback in fan spending -- at races and for NASCAR merchandise -- as reasons for the revenue decline.

"While our first quarter results reflect that challenging economic conditions continue, we remain confident that (the company's) business model continues to provide us with greater resilience than most other industries,” said Marcus Smith, chief operating officer and president, in a statement.

Added Bruton Smith, the company's chairman and chief executive, “We believe investing in first-class, fan-friendly facilities and premium markets well-positions (the company) for future growth.

"Once economic conditions improve," Bruton Smith said in the statement, Speedway Motorsports' "highly attractive venues, combined with the prospects of ongoing improvements in the motorsports industry and merchandising, provide broadcasters, sponsors and other corporate partners with outstanding long-term marketing opportunities.”

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