International Speedway Corp.‘s fiscal first-quarter net income fell 31% on falling revenue amid price cuts as the racetrack operator cut its fiscal-year outlook, citing a worsening economy.
The company, which is a major player in Nascar, has seen attendance at its events fall. The average income of Nascar fans is below the national median, making them more susceptible to the recession.
The announcement by ISC, which owns or operates 13 tracks such as Auto Club Speedway in Fontana and Daytona International Speedway, caused the company’s stock price to plunge 24%.
ISC also cut its forecast of how well the company would perform for the full year, because the economy’s woes continue to limit consumers’ willingness to buy tickets for NASCAR races and to spend dollars on NASCAR-related merchandise.
“Like other companies, we are feeling the effects of high-single-digit unemployment and historic lows in consumer confidence,” John Saunders, ISC’s chief operating officer, said today. “We do not anticipate seeing any recovery in the economy until sometime in 2010.”
President Lesa Kennedy said the company had reduced ticket prices to make it more affordable for fans to come to events.
For the period ended Feb. 28, the motorsports promoter reported net income of $25.1 million, or 52 cents a share, down from $36.2 million, or 71 cents a share, a year earlier. Excluding items, earnings fell to 56 cents from 78 cents. Revenue decreased 14% to $166.1 million.
NASCAR remains among the most popular of sports; last Sunday’s Cup race at Texas Motor Speedway drew an estimated 176,000 people. But there have been big patches of empty seats at other Cup races this spring, such as at Fontana and Atlanta.
In addition, spending on merchandise is slumping. ISC said it also expects a loss this year at Motorsports Authentics, a merchandise seller that ISC jointly owns with the other major U.S. track operator, Speedway Motorsports Inc.
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