Tote Ireland has 2008 losses of €800,000

A FALL in turnover, tightened margins and increased costs left State-owned horseracing pool betting operator, Tote Ireland, with an €800,000 loss last year.

Figures recently lodged with the Companies Registration Office (CRO) show the amount wagered with Tote Ireland by racegoers and punters fell by over 11 per cent in 2008 to €49.2 million, from €55.4 million the previous year.

The Tote returned just over €40 million in winning dividends to its customer, leaving it with a take out of €9 million, or 18.4 per cent. In 2007, its margin was 19 per cent, or €10.6 million.

Tote Ireland has three revenue streams: on-course betting, which is mainly on Irish racing; accounts, a mix of Irish and English racing; and joint deals with other operators such as the French PMU, Ladbrokes and Betfair.

According to chief executive Alexis Murphy, it shares margins earned on bets coming through other operators. The lower-margin business rose in 2008.

The main reason for the fall in 2008 turnover was a decline in the numbers attending race meets and the amounts being bet. Mr Murphy said attendances are now showing signs of stabilising. “There will always be a hard core of racegoers,” he said.

Costs increased to €9.8 million last year from €9.4 million in 2007, leaving the company with an overall loss of €814,000.

It paid an €800,000 dividend in 2008 to its State parent, Horseracing Ireland (HRI), which was unchanged on the previous year. It also made payments of €550,000 directly to racecourses.

It had €3.5 million in cash at the end of the year, and net assets of €2.2 million. Mr Murphy told The Irish Times yesterday the company is working on developing its systems and the bets it offers racegoers and account holders.

The Tote is a pool system, where it takes a percentage of all bets placed, pools the balance, and pays out a dividend calculated in line with the number of winning tickets and amounts staked.