Dunedin Venues Management Ltd results show increased operating profit

Dunedin Venues Management Ltd, operators of the Forsyth Barr Stadium and the Dunedin Centre, have been buoyed by an improvement in revenues through the 2013/14 financial year.

With revenue for the year increased to $9.1 million and an improvement in operating profit of 10.3%, to $2.7 million, from the previous year, Dunedin Venues Management Ltd (DVML) recorded a net loss (after rental costs of $4 million) of $58,000 compared to a loss of $986,000 for the same period last year.

DVML Chief Executive Terry Davies believes that this is a positive result and an indication of the organisation’s improvement over the last 12 months.

Davies explained that the result reflected the "significant" revenue boost delivered to DVML by hosting an All Blacks test in June, earlier than expected, which boosted results for 2013/14.

However, Davies cautioned “a business that's turning over $9 million revenue, versus a $4 million rental, is not sustainable."

While Dunedin City Council is conducting a review of the Stadium’s operations, Davies added that DVML staff were doing what they could to lift revenue and improve the business, which was delivering results.

Davies explained that more concerts were being signed, the range of events was increasing, and the Dunedin Centre was securing more conferences, contributing to 330,000 people passing through the venues' gates during 2013/14.

He explained “we’ve invested a lot of time into strengthening relationships with promoters and our venue hirers and we’re seeing the results of this work.

“We remain commercially focused to achieve a wide variety of profitable events across our venues and deliver value to our partners and stakeholders.

DVML had also restructured as part of a push to adopt a more commercially-driven focus, and the aim was to lift revenue to $10 million a year over the next 18 months.

Davies concluded "we're doing as much as we can from an operational point of view to continue to grow."

18th September 2014 - DUNEDIN VENUES APPOINTS NEW BUSINESS DEVELOPMENT MANAGER

4th July 2012 - AUDIT NZ WARNS DUNEDIN CITY COUNCIL OVER FORSYTH BARR STADIUM COSTS