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RACING AUSTRALIA ANNUAL REPORT 2016
OPERATIONS CHIEF EXECUTIVE
OFFICER'S REPORT
continued
Throughout the financial year a new commercial
arrangement for the supply of parentage testing
services was negotiated with transitioning commencing
in June 2016. The financial impact of the new
arrangements will materialise in the 2016-2017 financial
year significantly reducing the Australian Stud Books'
cost base while maintaining fully accredited services
delivered at the highest standards possible.
Racing Australia’s surpluses are currently being utilised
for the purpose of accelerated loan repayments for the
purchase of the Australian Stud Book and Australian
Genetic Testing.
During 2015-2016 the loan balance decreased by
$3,128,755 from $13,396,267 to $10,267,512. The loan
reduction was in part due to the scheduled principal
repayments and a one-off accelerated loan repayment
of $1,000,000.
Based on scheduled loan repayments, a further
$2,500,000 will be paid off the loan during
2016-2017 reducing the balance to $7,767,512 by
30 June 2017. A renegotiation of the terms of the loan
is due in September 2017 when consideration will be
given to making a further accelerated loan repayment.
The company continues to focus attention on
leveraging the synergies from its acquisitions and
mergers to drive future growth and efficiency savings.
A number of actions have been taken throughout the
year which will take effect next financial year.
An extensive commercial review was undertaken in
the latter half of the year to identify opportunities to
maximise Racing Australia’s assets and people to drive
further commercial growth.
The consolidated budgeted surplus for 2016-2017 is
budgeted to increase by $1,696,107 to $4,632,162.
Racing Australia revenue diversification
Copyright Licence and Supply
33% ($4,332,308)
Includes Copyright Licence & Supply of racing
materials to commercial clients and race clubs
Publishing
2% ($311,400)
Includes race club pre press services and website
design and hosting
Connect
2% ($248,634)
Connect communication and send fees
TRSC
8% ($1,109,357)
Includes nomination fees
Registrar of Racehorses
12% ($1,543,861)
Includes registration and syndicate applications,
change of name, horse ID, subpoena fees
Australian Stud Book
38% ($4,947,706)
Includes live foal, non live foal, stallion returns,
declaration of service, export, import and late fees
Interest
1% ($76,816)
Includes bank interest
Other
4% ($504,784)
Includes SNS funding
Total income
$
13,074,866