VRC posts sixth straight loss, but points to positives in balance sheet turnaround

The Victoria Racing Club posted a $7.2 million comprehensive loss in 2024/25, a $17.4 million improvement on the previous financial year, as it grew revenue and decreased costs under a new management structure.

While posting its sixth consecutive loss, the VRC’s chief executive Kylie Rogers pointed to a $12 million earnings before interest, taxes, depreciation and amortisation (EBITDA) profit, a $17.9 million uptick compared to 2023/24, after releasing last financial year’s annual report on Tuesday.

The total losses for the VRC, which hosts the Melbourne Cup Carnival, have reached $94 million over the past six years.

Last financial year’s profit and loss statements revealed total revenue for the year reached $225.7 million, up 4.2 per cent on the previous year, while the club reduced expenditure by $7.84 million to $232.92 million.

The turnaround coincided with Rogers making sweeping changes to the executive of the VRC, making more than 40 positions redundant in late 2024 in a bid to turnaround the club’s financial fortunes.

“We are in the process of working through our new three-year strategy, and the $17.9 million dollar EBITDA turnaround is an important start in returning the club to a net profit position,” Rogers said.

“Over the last financial year, we have had a clear focus on increasing club revenue, which has included strengthening our commercial partnerships, growing our membership base to a record 35,371, and a new media rights partnership with TAB and the Nine Network.

“We have been disciplined in our approach, managed our expenses, and right-sized our business to ensure operational efficiency. 

“Over this period, we have decreased our spending by $8.7 million and paid down a further $5 million dollars of debt.”

The reduction of the club’s debt, which had ballooned to $72.5 million last year, is a significant step.  

In terms of revenue, thoroughbred racing industry distributions increased in 2024/25 by $2.66 million but wagering and other racing revenue fell slightly to $11.02 million.

Marketing, sponsorship and broadcast rights, in Channel Nine’s first year of telecasting the Melbourne Cup carnival, revenue was also up as was ticketing and membership revenue.

VRC membership increased year-on-year, with the club hitting another record with 35,371 members paid up in 2024/25.

“We are under no illusion there is still plenty of hard work ahead, but the plans are in place and the outlook is positive, and we are committed to building on these sound foundations,” Rogers said.

“The board has approved plans for the 2026 financial year. Driven by the success of the 2025 Melbourne Cup Carnival, and ongoing revenue growth and further operating efficiencies we are expecting to deliver another year of improved EBITDA growth, further debt reduction and increased investment in our strategic pillars.”

VRC chair Neil Wilson credited Rogers, who started at the club in September last year, with overhauling the business model at Flemington.

“This strategy has already delivered positive returns and informed several organisational changes, including a refreshed, more efficient operating model and the appointment of new executive team members,” Wilson wrote. 

“By restructuring operations, we removed duplication, reduced costs, and refined our focus, ensuring a clear and sustainable alignment to the new strategy.” 

Last year’s headline-grabbing $24.2 million loss presented plenty of room for improvement for Rogers, who took over the CEO role in September 2024.

Wilson said the 2024 Melbourne Cup carnival contributed more than $500 million in economic benefit to Victoria “across multiple industries from retail, tourism, hospitality and accommodation and supported the creation of more than 14,000 on-course jobs at Flemington”.

“Our homegrown event was directly responsible for bringing 68,898 people to Victoria, including around 20,000 international guests with strong year-on-year increases from New Zealand, United Kingdom, and Ireland,” Wilson wrote. 

“We also saw an increase in younger people attending Cup week with 45 per cent of general admission ticket buyers under the age of 35.”

The VRC has three director positions open on its board, with the terms of Ann Peacock and Allison Purdey expiring this year.

Peter Murray, who was appointed to the casual vacancy left by David Barham in September, will also need his position ratified by a member vote at the annual general meeting.

The AGM will be held at Flemington on Tuesday, December 16, from 3pm.

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