Following its Annual General Meeting ("AGM") today (4 September), The Hong Kong Jockey Club ("the Club") announced its results for the 2023/24 financial year ended 30 June 2024 (FY2023/24).

 

The Club faced significant external challenges during the year, including the difficult macro-economic environment, the increasing threat of illegal gambling and rising competition from Macau casinos. Above all, a fundamental post-pandemic shift in consumer behaviour in favour of new digital experiences and outbound travel impacted race-going and racing wagering. In consequence local racing wagering turnover for the racing season (10 Sep 2023 – 14 Jul 2024) was down 9.3%.

 

This decline was partly mitigated by the Club's strategy to globalise its racing and build an overseas customer base, with commingled turnover on Hong Kong racing up 13.7% to HK$28.8 billion (approx. £2.8 billion), comprising 23.7% of local racing turnover for the season.

 

Furthermore, through the World Pool the Club is leveraging commingling and simulcasting to make Hong Kong the global hub for wagering on the world's top races. With an additional 83 top overseas races last season, total turnover on simulcasting and the World Pool was up 8.7% to HK$12.8 billion (approx. £1.2 billion).

 

Nonetheless, the success of commingling, simulcasting and the World Pool was not sufficient to offset the decline in local racing turnover. As a result, overall racing wagering turnover for the season was down 4.5% to HK$134.7 billion (approx. £13.1 billion) and for FY2023/24 down 3.1% to HK$136.1 billion (approx. £13.3 billion).

 

Football turnover, however, achieved a record high of HK$160.3 billion for FY2023/24, up 2.2%. Here additional fixtures, the introduction of 24-hour operations, an increase in In Play offerings, as well as innovative new products like Same Game All Up and Early Settlement, all helped boost turnover and counter illegal markets. However, with the Club paying an additional HK$2.4 billion in Special Football Betting Duty per year for five years starting from April 2023, income from football was down 16.6% to HK$8.1 billion.

 

Mark Six performance was also positive, with refinements to the jackpot reserve model enabling the Club to offer more and higher jackpots. In consequence, Mark Six turnover for FY2023/24 was up 13.3% to HK$8.5 billion.

 

As a result, and despite the many challenges of the year, the Club's total turnover for FY2023/24 was essentially unchanged at HK$304.9 billion (approx. £29.8 billion). Net margin, however, was down 10.5% to HK$14.8 billion, largely reflecting the full-year impact of Special Football Betting Duty of HK$2.4 billion.

 

Even with this reduced income, the Club was nonetheless determined to maintain its strong support for the community, contributing a record HK$40.1 billion (approx. £3.9 billion). This comprised a record HK$29.9 billion (approx. £2.9 billion) in betting duty, profits tax and Lotteries Fund contributions, and HK$10.2 billion (approx. £996.2 million) in approved charity donations – also a new record.

 

Reflecting on the year, Club Chairman Michael Lee reinforced the Club's commitment to fulfilling its purpose of acting for the betterment of our society, "The Club will continue to invest and, if necessary, make use of its reserves, both to ensure the Club's long-term future and to uphold our commitment to the community."

 

Club CEO Winfried Engelbrecht-Bresges said: "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 behaviour as they seek out new experiences online or in outbound destinations. Despite this, the Club has continued to deliver outstanding racing entertainment and the strongest support for our community."

 

Global racing excellence

 

From a racing perspective the past season was one of the best ever, with Hong Kong welcoming 32 overseas runners from five countries to its flagship Longines Hong Kong International Races and FWD Champions Day. Against this global competition Hong Kong horses swept three of the four Hong Kong International Races and all three races on Champions Day.

 

Perhaps even more impressive were Hong Kong's three Group 1 victories overseas.  California Spangle took the Al Quoz Sprint in Dubai, while Romantic Warrior became the first Hong Kong winner of Australia's W.S. Cox Plate before capturing Japan's Yasuda Kinen – the third Hong Kong horse to win the race.

 

The quality of Hong Kong racing was reflected in the world rankings. For the first time, all 12 of the Club's Group 1 races featured in the World's Top 100 Group 1 Races and four Hong Kong horses were in the top 15 of the World's Best Racehorse Rankings. This is an outstanding achievement given that Hong Kong has less than 1% of the world's thoroughbreds in training.

 

Strengthening the Club's world-class racing and customer-centricity

 

Mindful of the opportunities in the global marketplace, but also of the need to strengthen its connectivity with customers, especially in Hong Kong, the Club has launched multiple initiatives.

 

To further develop the potential of the World Pool, the Club is developing new racing and wagering information technology. Ultimately the Club seeks to offer World Pools on all of the world's Top 100 Group 1 Races, with Hong Kong becoming the global hub for racing, similar to its position as one of the world's financial hubs.

 

To strengthen customer engagement, the Club is investing in a 360-degree data platform and a new customer value management system. With Gen Y and Z in mind, a new digital racecourse concept will be piloted at Happy Valley Racecourse next season. The Club will also continue to transform selected retail branches into sport-dine-play hubs, with the latest, in Spring Garden Lane, Wanchai, opening on 1 September. 

 

With the live racecourse experience being fundamental to attracting and retaining customers, the Club will further develop racecourse entertainment through the Happy Wednesday brand and special programming on major racedays. Having attracted record numbers of Mainland visitors last season, the Club looks forward to welcoming more next season.

 

Stewards re-elected

 

At the AGM, the Club's Voting members re-elected four Stewards to the Board of Stewards. Mr Michael T H Lee, Mr Nicholas D Hunsworth, Dr Henry H L Chan and Mrs Ann Kung Yeung Yun Chi were re-elected to serve a term of three years each. Following the AGM, the Board of Stewards re-elected Mr Michael T H Lee as Chairman and The Honourable Martin Liao as Deputy Chairman for 2024/25.

 

Standing with our community

 

The Club has a unique Integrated Business Model through which racing and wagering generate significant tax contributions, charity support and employment opportunities for the community.　

 

Responding to the needs of the community in the current challenging times, the Club's Charities Trust approved a record HK$10.2 billion (approx. £996.2 million) in donations in FY2023/24 to support 173 charities and community projects.

 

The Club also launched large-scale projects targeting the elderly, young people, inter-generational poverty, health and mental well-being. For example, the Jockey Club Carer Space Project provides holistic support to carers looking after the elderly, while JC PROJECT LIFT equips low-income families living in transitional housing with the necessary life skills to transform their trajectories. In addition, through a new whole-of-Trust initiative, eight projects will target the mental health needs of young people and the city's growing population of elderly.

 

All of these join long-running initiatives through which the Club seeks to move the needle across a wide range of social issues. Several have already successfully transitioned to the mainstream, including being taken up by the HKSAR Government.

 

Institute of Philanthropy

 

Undoubtedly the Club's most significant initiative in 2023/24 was the establishment of the Institute of Philanthropy (IoP). The IoP is motivated by an awareness that issues like epidemic preparedness and the health impacts of climate change can only be tackled through scaling up the Club's response in partnership with others. With the Club now deriving over 20% of its racing wagering turnover from overseas, the IoP also aligns with the Club's own development.

 

Hence the Club's vision of the IoP as an independent "think-fund-do" tank, bringing together thought-leaders, philanthropists and stakeholders from around the world to learn, exchange best practice, and co-create and co-fund philanthropic projects. Several projects are already in progress.

 

There will be opportunities to learn about the work of the IoP and of other global philanthropists at the Philanthropy for Better Cities Forum 2024, convened by the Charities Trust in association with the IoP. With the theme "Delivering Impactful Philanthropy in the Real World", it will take place at the West Kowloon Cultural District on 9-10 September and will bring together some 100 distinguished speakers and over 2,000 delegates from around the world.  

 

Mainland development

 

The Mainland is key to the Club's vision for the future. Following the policy direction set out in the National Equine Industry Development Plan 2020-25, the Club believes that equine sport can make a major contribution to rural revitalisation and economic growth.

 

The Club has already demonstrated this potential at its Conghua Racecourse in Guangzhou through substantial investment in infrastructure and the training and development of a skilled workforce. With racing due to commence at Conghua in 2026, the Club will add further value. Preparations are already well in hand, including the construction of an iconic new grandstand. The overall objective is to develop Conghua as a centre of equine excellence for the Greater Bay Area.

 

In support of equine industry development at the national level, the Club will also continue to engage with national and provincial level officials, as well as to extend its long-standing collaboration with the Chinese Equestrian Association and the China Horse Industry Association.

 

Illegal gambling

 

Illegal gambling is without doubt a rising and major threat. It expanded hugely during the pandemic and continues to grow faster than legal gambling. Two years ago, the Club estimated total illegal turnover was HK$339 to HK$355 billion (approx. £34.7 billion) – more than was bet through legal channels. Today those numbers are undoubtedly much higher.

 

This is why the Club believes there is a need to fully examine the magnitude of illegal betting on other sports, especially basketball, and that a strong case can be made to extend the Club's licence.  The Club will therefore continue to keep the HKSAR Government fully informed of the scope and scale of illegal betting, though it recognises that any expansion of sports betting is for the HKSAR Government to decide.    

 

Celebrating the Club's 140th Anniversary

 

The Club has come a long way from its beginnings as a racing and members club. Over 140 years, the Club and its partnership together with the community have thrived thanks to its unique integrated business model through which racing and wagering generate tax contributions, charity support and employment opportunities for Hong Kong.  

 

In the next weeks and months, the Club will launch a series of celebratory initiatives and online platforms under the banner "With You. Then. Now. Always." recognising this significant milestone and the contribution of all Hong Kong people to the Club's purpose of the betterment of society. The first of these initiatives will be the Club's 140th Anniversary Raceday on 20 October. More events and activities will be announced.

 

Results summary - by financial year (1 July 2023 – 30 June 2024)

	2023/24 (HK$m)	2022/23 (HK$m)	% change
Racing turnover*	136,050	140,363	- 3.1%
Football turnover	160,272	156,876	+ 2.2%
Mark Six turnover	8,562	7,560	+ 13.3%
Total	304,884	304,799	0.0%

*89 race meetings in 2023/24 and 87 race meetings in 2022/23

 

Club contributions - by financial year (1 July 2023 – 30 June 2024)

	2023/24 (HK$m)	2022/23 (HK$m)	% change
Racing betting duty	13,127	14,105	- 6.9%
Football betting duty	10,541	10,363	+ 1.7%
Special Football betting duty	2,400	600*	+ 300%
Lottery duty	2,141	1,890	+ 13.3%
Profits tax	345	539	- 36.0%
Lotteries Fund	1,284	1,134	+ 13.3%
(A) Government duty, tax & Lotteries Fund	29,838	28,631	+ 4.2%
(B) Approved Charities Trust donations	10,219	7,264	+ 40.7%
Total Club's contribution (A+B)	40,057	35,895	+ 11.6%

*For April - June 2023

 

The Hong Kong Jockey Club's 2023/24 Annual Report can be downloaded from the HKJC website at

https://corporate.hkjc.com/corporate/english/history-and-reports/annual-reports.aspx