ARE.L Regulatory News (ARE)

20 Jul 2005 07:00

Arena Leisure PLC20 July 2005 20 July 2005 Arena Leisure Plc Group Cost Reduction: An Update Further to the Arena Leisure's ("Arena" or "the Company") AGM statement on 13June 2005, the Company provides the following update with regard to initiativesbeing undertaken to reduce its cost base. The Company has successfully implemented the first phase of its efficiency drivewith material gains being produced. This follows a major review of its contractual arrangements and operationalprocedures regarding Arena's media production and delivery. The completion of the first phase has enabled costs of delivering the picturesof live racing at Arena's racecourses to both broadcast and bookmaker partnersto be reduced by £300,000 in the second half of 2005, and £500,000 per annumthereafter. A second phase, currently underway, will focus on the production costs ofpictures of live racing from Arena's racecourses. The Company will update themarket on the outcome of this stage of the review in due course but the outcomeis also expected to be earnings enhancing. Ian Penrose, Chief Executive of Arena said: "We are delighted to have completed the first phase of our drive for increasingefficiency with such a positive outcome. We continue to find opportunities toimprove the quality and efficiency of our business given the unique volume ofracing we stage and expect to make a further announcement shortly." - ends - For further information, please contact: Arena Leisure PlcIan Penrose, Chief Executive 020 7495 2277 Bell Pottinger Corporate & FinancialDavid Rydell/Zoe Sanders / Paddy Blewer020 7861 3232 This information is provided by RNS The company news service from the London Stock Exchange