Dover Motorsports, Inc. saw slightly lower earnings for the three months ending June 30 as revenues remained soft from Dover’s NASCAR weekend and a country music event failed to return for a second year.
Shares at the end of the week were unchanged at $2.10 a share.
Net earnings were $5,106,000 in the second quarter compared to $5,489,000 in the second quarter of 2015.
The company promoted a NASCAR triple-header and hosted the Firefly Music Festival in Dover during the second quarter of 2016 and 2015. The Company also hosted the inaugural Big Barrel Country Music Festival during the second quarter of 2015, but was canceled this year.
The cancellation was one of a number such moves in the country music space for reasons that remain unclear. Another country music festival in Delaware was also cancelled. Big Barrel had reported attendance figures that were comparable with those of the early existence of Firefly.
The company leases a portion of its Dover facility to the promoter of Firefly (and Big Barrel in 2015), provides logistical assistance and handles certain concessions for which the company retains a percentage of the gross sales.
Revenues for the second quarter of 2016 were down slightly at $25,253,000 compared with $25,380,000 for the second quarter of 2015, primarily from the cancelation of Big Barrel in 2016 and lower admissions related revenue for the Dover NASCAR weekend. The downturn was partially offset by higher broadcasting and sponsorship revenue.
Operating and marketing expenses were $13,847,000 in the second quarter of 2016 compared to $13,629,000 in the second quarter of 2015. The increase was primarily due to the scheduled increase in purse and sanction fees for the Dover NASCAR weekend.
The company has been unable to sell a stock car racing track in Nashville after a deal with a potential buyer fell through. Seating has also been removed from Dover track, due to a long-running decline in attendance that has affected most tracks on the NASCAR circuit.
