The Hong Kong Jockey Club (HKJC), a cornerstone of Hong Kong’s sports and wagering industry, has recently published its financial figures for the fiscal year 2023/24, which ended on 30 June 2024. The figures show a mixed bag of results, with racing turnover experiencing a slight decline but the overall turnover remaining unchanged.

Hong Kong Jockey Club Reports 2023/24 Financial Results: Racing Turnover Down 3.1% While Total Turnover Remains Stable

Racing Turnover Drops by 3.1% Despite More Race Meetings

The most striking figure in HKJC’s 2023/24 report is the 3.1% drop in racing turnover, which fell to HK$136.1bn (US$17.5bn). This decline occurred even though the club held two additional race meetings during the year. The racing turnover, a key indicator of the club’s performance, showcases the changing dynamics of wagering in Hong Kong, where customer preferences have been gradually shifting towards other forms of entertainment and gambling.

The marginal drop can be attributed to several factors, including the lingering effects of the global pandemic, a sluggish macroeconomic environment, and the changing behavior of customers who are increasingly seeking new experiences both online and in outbound destinations.

Football and Mark Six Lottery Provide a Silver Lining

While racing turnover saw a decline, football betting turnover rose by 2.2%, helping to offset the losses in racing. Football betting remains a popular choice for Hong Kong punters, with a turnover of HK$304.9bn, the same as last year. This modest increase is a testament to the growing appeal of football betting, both locally and internationally.

The Mark Six Lottery also played a crucial role in propping up HKJC’s overall turnover, witnessing an impressive 13.3% increase. As a result, despite the challenges in racing, the overall turnover for the year remained flat at HK$304.9bn compared to HK$304.8bn in 2022/23.

A 10.5% Decline in Net Margin: The Impact on HKJC’s Financial Health

While the overall turnover showed stability, the club’s net margin for the year fell by 10.5%, dropping to HK$14.8bn. This decline in profitability highlights the ongoing challenges faced by HKJC in maintaining healthy margins, particularly as local wagering turnover also decreased by 4.5% during the same period.

The fall in net margin is indicative of the changing landscape in Hong Kong’s wagering market, where traditional forms of betting face stiff competition from emerging alternatives. However, the Hong Kong Jockey Club remains resilient, as it continues to innovate and adapt to these shifting trends, both in terms of customer preferences and wagering offerings.

HKJC’s Record Contribution to the Community: HK$40.1bn

Despite the dip in profitability, one of the most remarkable achievements of HKJC in 2023/24 is its record contribution to the Hong Kong community, amounting to HK$40.1bn. This figure underscores the club’s commitment to playing a pivotal role in the city’s economic and social development. Through its various charitable donations and community programs, HKJC has maintained its position as one of the largest charity contributors in Hong Kong.

The club’s charitable activities span across sectors such as healthcare, education, social welfare, and sports development, making it a key player in supporting the local community. The record contribution of HK$40.1bn is a testament to the club’s ongoing dedication to giving back, even in the face of economic headwinds.

CEO Winfried Engelbrecht-Bresges: “The Club’s Resilience is Remarkable”

Commenting on the financial results, HKJC CEO Winfried Engelbrecht-Bresges expressed pride in the club’s resilience, stating: “Looking back over the past year I am once again struck by the enormous resilience of the club. Having taken everything that the pandemic had to throw at us, we have had to contend with an extremely challenging macro-economic environment as well as significant changes in customer behavior.”

Engelbrecht-Bresges highlighted that despite the obstacles, the club has continued to provide world-class racing entertainment and unwavering support to the community. His remarks reflect the leadership’s forward-thinking approach and commitment to innovation in the face of adversity.

Navigating a Changing Landscape: The Rise of Digital Experiences

The Hong Kong Jockey Club has been keenly aware of the changes in customer behavior over the past year, with more people turning to online experiences and betting options in outbound destinations. This shift has been accelerated by the pandemic, as many customers have started exploring digital wagering platforms and seeking out new forms of entertainment.

In response to these changes, HKJC has been quick to adapt, launching several new initiatives aimed at enhancing customer engagement and retention. One of the most exciting developments in this regard is the creation of the “ChatGPT version of horseracing,” which uses advanced data-driven technologies to offer customers a more personalized and immersive betting experience.

The club’s embrace of cutting-edge technology is indicative of its proactive stance in catering to the needs of a modern, digitally-savvy audience. By integrating AI and other innovative solutions into its offerings, HKJC is positioning itself to stay competitive in the rapidly evolving world of sports betting and entertainment.

Looking Ahead: What’s Next for HKJC?

As HKJC enters the 2024/25 financial year, there are several key areas of focus for the club. One of the most pressing priorities will be to address the decline in racing turnover and explore ways to rejuvenate interest in horseracing among its customer base. This may involve the introduction of new racing formats, more interactive experiences, and enhanced digital offerings to attract younger, tech-savvy audiences.

At the same time, the club will continue to build on the positive momentum generated by the growth in football and lottery betting, leveraging these areas as stable revenue streams. The record-breaking contribution to the community is also expected to remain a key focus, as the club reaffirms its commitment to giving back to Hong Kong society.

FAQs About Hong Kong Jockey Club’s 2023/24 Financial Results

1. What is the total turnover for the Hong Kong Jockey Club in the financial year 2023/24?

The total turnover for the Hong Kong Jockey Club (HKJC) in the financial year 2023/24 was HK$304.9bn, which remained largely unchanged from the HK$304.8bn recorded in the previous year.

2. How much did the racing turnover decrease in 2023/24?

Racing turnover decreased by 3.1%, falling to HK$136.1bn (US$17.5bn) despite the addition of two extra race meetings.

3. What other betting categories saw growth in 2023/24?

In 2023/24, football betting turnover increased by 2.2%, and the Mark Six Lottery saw a substantial rise of 13.3%.

4. What was the Hong Kong Jockey Club’s net margin for 2023/24?

The club’s net margin for 2023/24 fell by 10.5%, dropping to HK$14.8bn.

5. How much did the Hong Kong Jockey Club contribute to the Hong Kong community in 2023/24?

The Hong Kong Jockey Club contributed a record HK$40.1bn to the Hong Kong community in 2023/24 through various charitable programs and community projects.

6. What challenges did the Hong Kong Jockey Club face during the 2023/24 financial year?

The club faced several challenges, including a sluggish macroeconomic environment, changes in customer behavior due to the pandemic, and increased competition from online and outbound betting destinations.

7. What did the CEO of the Hong Kong Jockey Club say about the 2023/24 results?

CEO Winfried Engelbrecht-Bresges praised the resilience of the club despite difficult conditions, emphasizing the club’s ability to deliver outstanding racing entertainment and community support.

8. What innovative steps did the Hong Kong Jockey Club take to retain customers?

HKJC introduced the “ChatGPT version of horseracing,” using advanced data-driven technologies to offer a more personalized and immersive betting experience.

9. What is the outlook for the Hong Kong Jockey Club moving forward?

Looking ahead, the Hong Kong Jockey Club will focus on revitalizing interest in horseracing, enhancing digital offerings, and continuing to grow its football and lottery betting operations.