2018-2019 ANNUAL REPORT BRISBANE RACING CLUB LIMITED | 1 2018-2019 Annual Report Contents 4 Chairman’s Report 8 Chief Executive Officer’s Report 10 Master Plan Report 11 Racing Report 14 Sales and Marketing Report 16 Operations Report 17 Facilities Report 18 Human Resources Report 19 Clubs Report 20 History Report 22 Sponsorship 23 Directors’ Report and Financial Statements Cover: Eagle Farm Racecourse on TAB Stradbroke Day during the 2019 Channel Seven Brisbane Racing Carnival presented by TAB. Image: Jared Vethaak Photography Right: Trekking and Jockey Kerrin McEvoy winning the TAB Stradbroke Handicap on TAB Stradbroke Day during the 2019 Channel Seven Brisbane Racing Carnival. 2 | 2018–2019 ANNUALImage: REPORT Jared Vethaak Photography BRISBANE RACING CLUB LIMITED | 3 The highlight of the BRC’s last 12 months was the return We have undertaken detailed planning for new-look to racing at Eagle Farm on Saturday, December 22. The Summer and Winter Carnivals in collaboration with return to Eagle Farm was a real Christmas present for Racing Queensland. We will welcome The Gateway - a BRC Members and for the Queensland racing industry new $250,000 race for four-year-olds, in December. as we welcomed the sight of horses galloping along the Membership has continued to grow past the 4000 mark, state’s most famous track. When Victorian colt Dubious with new introductory categories providing a pathway claimed the first race on the new course proper, we to full membership. The return to racing at Eagle Farm began to put behind us the testing times of May and and the improvements at both tracks have undoubtedly June 2017 when the first version of the rebuild broke created interest for people wishing to become Members. down. Major corporate partnerships have been renewed and All BRC Members can be proud of the racing at extended during the year confirming the strong links that headquarters since Eagle Farm returned, highlighted by the BRC has with national brands. Long-term partners a Channel Seven Brisbane Racing Carnival, presented Lion, Channel Seven, Coca-Cola, Hardy Brothers, and by TAB, that included Trekking’s victory in the TAB new partner TAB are committed to supporting your Club Stradbroke Handicap. The track was carefully managed well into the future. Katie Churchill, our GM Sales and with an initial race schedule including two feature Marketing, will provide more detail on our sponsorships carnival days. Eagle Farm is ready for its next phase and corporate partnerships. which includes an increased number of race meetings that provide a long-awaited opportunity for the BRC to OUR FINANCIAL PERFORMANCE plan a better financial year for racing. Eagle Farm will Your Club recorded a profit of $779,250 for the financial Chairman’s host five consecutive Saturday racedays in early 2019/20 year. This was the second consecutive year of good culminating on Canadian Club Melbourne Cup Day, financial performance despite the challenges presented Report before a six-week break for its first major renovation. by the unavailability of Eagle Farm for much of the With Eagle Farm racing well and Doomben continuing first half. The uplift in BRC racedays to 53, including It is with great pleasure that I to perform at a remarkable level, your Board and 32 Saturdays, gave the racing arm of our business a present to Members this 11th Annual management can focus on improving the raceday significant boost. While racing incurred a loss of circa experience for Members and raceday patrons. Members $2.5 million, this represented a significant improvement Report of the Brisbane Racing Club. would have noticed the many improvements already from the previous year loss of circa $4.3 million. Growth to the ground floor of the John Power Stand including in food and beverage, sponsorship, membership and new bars in the Champagne and Group One Lounge, The Club’s 2018/2019 year again provided growth in revenues corporate engagement all played a vital role in this year’s new larger screens in the betting auditorium and new from our diversified business model, underpinning another positive results. The Club operations will be detailed later furniture throughout. Details of major infrastructure year of consolidated profit that supported the BRC’s core in this report. upgrades at Doomben including an $800,000 boost to racing business. The BRC operating model is now maturing Our consolidated revenue grew to $58.7 million up from track irrigation, the upgrade to the lift in the Members into a profitable yet complex business managed by a highly $50.9 million last year. This continued growth highlights Stand and the many projects at Eagle Farm will be skilled senior executive leadership group and supported by new non-racing revenue streams coming online, such detailed later in this report by our General Managers. committed long-term loyal staff. as the Racecourse Village Shopping Centre that opened 4 | 2018–2019 ANNUAL REPORT “Members can look forward to more racing throughout 2019/20.” in August 2018 and finalising the independent living and aged care project with Lendlease at Doomben. Construction began on this Bernborough Ascot project in late 2018. The 2019 revenue of $58.7 million represents a 66 per cent growth since 2014. We expect this turnover figure to level out for the next two years while the business absorbs and adapts to the diversified business The Bostonian winning the Doomben 10,000 on TAB Doomben 10,000 Day. model. Your board is mindful of controlling our growth cycle as our BRC Master Plan unfolds. tremendous value to our balance sheet. However, your Our Master Plan continues to unfold with detailed Board has taken a very conservative approach and these planning focusing on a proposed new commercial office It is important that our Club maintains the high assets are listed only at the cost price in our accounts and building in Eagle Farm’s St Leger Precinct. The next management skills necessary to guide our successful not listed at current market values. We do, of course, have residential tower in Ascot Green, Tulloch House, will but complex business while staying true to our 154 years to take up the depreciation on these assets each year. commence construction in mid-2020. The first tower, of racing tradition. This factor has never been more This is reflected in this year’s accounts at a total of $4.5 Ascot House, consisting of 90 apartments over nine levels important and remains critical to the sustainability of our million, up from last year’s $3.4 million. has only a few unsold apartments and is recognised as a Club. We constantly review performance and engage new benchmark residential project. Our joint-venture partner, skills as demanded by the business. This has impacted Mirvac is living up to its reputation as one of Australia’s our total employee costs which have risen to $19 million. THE YEAR AHEAD Members can look forward to more racing throughout leading apartment builders. As previously reported, this Our borrowings, as predicted, are sitting at $72 million. 2019/20. Our expanded schedule will cater for 71 race project will deliver some 1,100 apartments around the We have repaid approximately $5.3 million off the $12 meetings including 43 Saturdays. The 2020 Channel Eagle Farm track over the next decade. Millers Swim million loan from Mirvac and will continue to reduce Seven Brisbane Racing Carnival, presented by TAB, will School has commenced construction of its indoor pool debt as revenues from the Ascot Green development feature three consecutive Saturdays at Eagle Farm complex on Lancaster Road adjoining the BRC-owned flow back to the Club over the next decade. Interest paid culminating in the TAB Stradbroke Handicap. Our Club Ascot Childcare and Kindy. The swim school is scheduled on all borrowings this year amounted to $3.2 million, up operations will benefit from this increased schedule to open in February 2020. from $1.3 million last year. Full details are disclosed in the during these next 12 months. Eagle Farm will take the At Doomben, Bernborough Ascot Retirement Village is financial accounts later in this report. majority of Saturday racing over this time as the new well into the construction phase with the builder’s crane Our new commercial assets such as Racecourse Village track matures and resumes the title as Queensland’s towering over the south-eastern corner of the track. Shopping Centre, Ascot Childcare and Kindy, Gallopers racing headquarters. Doomben will enjoy a more balanced Stage one, consisting of approximately 50 independent and Souths Sports Clubs, together with the infield schedule after performing well above expectations during living apartments, is due for completion in mid-2020. stabling complex and infield developments, all add the unavailability of Eagle Farm. This project is a joint-venture with Lendlease and has a BRISBANE RACING CLUB LIMITED | 5 driving force in lifting the food, beverage and service through recently retired Lord Mayor Graham Quirk to raceday patrons to a new level. Paul’s professional continues under the new leadership of Adrian Schrinner guidance and innovation will be missed. We thank him and his team. We thank Graham for his long-term support for his efforts over the past four years and wish him well of the BRC and congratulate him on his appointment to in his new business venture. Dave Whimpey stepped the Board of Racing Queensland. We also acknowledge down at the end of the financial year after more than five support from State Government Member for Clayfield years as CEO. Dave guided the Club through some of the Tim Nicholls and the Brisbane City Council’s Hamilton most challenging times in our history as we encountered Ward Councillor David McLachlan.