ISC issues third quarter report, discusses attendance for Sprint Cup events
International Speedway Corp. held its conference call with investor analysts Thursday morning to detail results from the third quarter.
ISC hosted four Sprint Cup weekends during the third quarter, which ended Aug. 31 — two races at Michigan, Daytona in July and Watkins Glen. For the full financial report, go here.
Among the items mentioned in the nearly hour-long conference call:
— Admissions for comparable Cup events was up about 1 percent compared to the same time last year. This was mostly attributed to the Daytona race in July. In 2015, the seating capacity was reduced to about 50,000 for the Daytona summer race as construction continued on the grandstand. The stadium debuted at this year’s Daytona 500 with 101,500 seats.
— Watkins Glen had a second consecutive sellout this year.
— Michigan International Speedway saw admission declines for both its Sprint Cup events.
— The average ticket price for the four Cup races at ISC tracks in the third quarter was $83.11. That’s an increase of about 8 percent from the same period last year. The increase was mainly generated by the new seating and pricing at Daytona.
— The average ticket price for all Cup races at ISC tracks through the first nine months of the year is $96.14. That’s an increase of about 8 percent, also driven by pricing at Daytona.
— For the fourth quarter, ISC reported lower attendance-related revenue for Cup weekends at Darlington, Richmond and Chicagoland Speedway. Advance sales for the remaining events at ISC tracks (Kansas, Talladega, Martinsville, Phoenix and Homestead) are down 10 percent on average. ISC officials anticipate a sellout for the season finale at Homestead-Miami Speedway.
— In response to a question about admissions and the future of the sport, John Saunders, president of ISC, said on the call: “On the attendance side, we’re doing a number of things internally where we are looking at the next generation of fans and how we reach them. We’ve talked before about aging fans, avid fans that are aging out. We have repositioned resources within the company and are currently working through and resourcing how we recruit the next generation of fans. We’ve got to be very aggressive in the next phrase and we are. We’re ramping it up more than ever. … We’ve got great racing, but we’ve got to get these folks to the track, we’ve got to get them exposed to the live experience and from there we’ll build retention.’’
— In response to another question about attendance, Saunders noted the changing landscape of Cup drivers (both Jeff Gordon and Tony Stewart are scheduled to drive their final Sprint Cup races this season). Saunders said: “We find ourselves in the sport with star-power opportunities, I won’t call them challenges, I will call them opportunities. We have a generation of drivers who are starting to retire and we believe that’s having an impact. … What’s key for us on the attendance side is to stay focused on our consumer strategies, really, really honing in on the live entertainment value of these events, the social experience of these events and building that driver connectivity, star power, we’ve got great drivers coming up through the ranks.’’
— ISC exceeded its corporate sales target by about 12 percent from 2015.
— From 2017-2021, ISC plans to spend $500 million on capital expenditures. ISC has stated that redevelopment construction at Phoenix International Raceway will begin in 2017 and continue through late 2018.
— Daytona International Speedway’s stands suffered no structural damage from Hurricane Matthew.