Horseracing fixture operator, Arena Leisure, has posted losses of £42.2m for the year ending 31 December due to losses on its now obsolete attheraces broadcasting deal.

Losses and exceptional items on the channel, which saw audiences peak at 850,000 before its closure in March this year, reached £48.9m.

However, this provision does not take into account the £50m in contractual rebates due from racecourses, of which Arena is entitled to a third.

Arena and British Sky Broadcasting (BskyB) are now pursuing a new media rights deal with racecourses to re-establish attheraces.

Elsewhere, Arena saw a 38 per cent increase in operating profits to £7m last year, on turnover up 5 per cent to £34.3m.

Attendance at races was up 12 per cent to 475,000 people.

Looking forward to 2004, managing director, Ian Penrose, said the company has laid strong foundations for the future, and will be hosting 305 race days – staging over 2,000 races – this year, up from 247 in 2003. This means Arena will operate 23 per cent of all horseracing fixtures in the UK.