Speedway Motorsports 1Q profit falls, but tops Wall Street

CONCORD, N.C.—Speedway Motorsports Inc. said Wednesday its first-quarter profit slipped 3 percent on costs related to its New Hampshire Motor Speedway acquisition, but results surpassed analysts' estimates.

The operator of motorsports raceways reported net income fell to $30.9 million, or 71 cents per share, compared with $31.9 million, or 72 cents per share, a year earlier.

Analysts polled by Thomson Financial expected earnings of 69 cents per share.

Net interest expense surged to $9.4 million from $4.7 million due to increased borrowings related to the November acquisition of New Hampshire Motor Speedway.

For the period ended March 31, revenue rose 2 percent to $155.2 million from $152.2 million, but missed Wall Street's estimate of $157.6 million.

Event-related revenue climbed to $51.3 million from $49 million, while NASCAR broadcasting revenue increased to $37.6 million from $36.9 million.

Admission revenue slipped to $53.6 million from $56.5 million.

Chief Operating Officer and President H.A. Wheeler said in a statement that the company's improved revenue results came from increased sponsorships, luxury suite rentals, ancillary broadcasting rights and other event-related revenue.