Falling box office drives Opera Australia to $10 million loss

Opera Australia has reported a dramatic 23% drop in box office revenue for 2024, culminating in an operating loss of $10.1 million - the company’s worst financial result since the pandemic-stricken year of 2021.

Released today, Opera Australia’s 2024 annual report paints a sobering picture of a year defined by soaring costs, falling audience numbers, and a high-risk production strategy that failed to deliver.

At the heart of the company’s woes was a costly bet on the Andrew Lloyd Webber musical Sunset Boulevard, headlined by his former wife, Sarah Brightman.

Despite initial fanfare, the production faltered due to critical reviews and Brightman’s mid-season injury, particularly impacting its Melbourne run.

Acknowledging the financial setback, but maintaining that lessons had been learned, Opera Australia Chair, Rod Sims stated “we’re not in crisis ... that was largely a one-off, and lessons have been learned.”

While Sims confirmed the production ultimately made a small profit, media reports have indicated that expectations were benchmarked against the company’s 2022 smash hit The Phantom of the Opera, which drew over 200,000 patrons. In contrast, Sunset Boulevard brought in just 127,362 attendees across both cities - nearly half the numbers of earlier blockbusters.

In a further sign of strain, Opera Australia accepted a $6 million interest-free loan from a board member in late 2024 to shore up cash flow ahead of summer revenues.

Although only $2 million was drawn down and fully repaid by year’s end, Sims conceded the optics were poor, noting “we could have just as easily put in place a bank facility. I accept that would have looked a lot better.”

The company also drew on its capital reserves to cushion the blow, posting a consolidated loss of $6.1 million after investment returns, compared to $1.7 million the year prior.

Audience Decline and Programming Shifts
During the year total attendance for Opera Australia productions fell by 26% to 362,430 across 356 performances, reflecting the ongoing challenge of post-COVID audience recovery, coupled with a cost-of-living crisis and the temporary closure of Melbourne’s State Theatre. Productions in Melbourne were relocated to less optimal venues like the Regent Theatre and Margaret Court Arena.

Despite these challenges, 2024 wasn’t without its artistic highlights. The company premiered a record four new Australian works, including Brett Dean’s operatic Hamlet, which drew a modest 7,255 attendees. Mainstage staples such as La Traviata, The Magic Flute, and Idomeneo continued to anchor programming at the Sydney Opera House, while West Side Story dazzled crowds on Sydney Harbour.

Governance Under Scrutiny
Compounding Opera Australia’s difficulties is a leadership vacuum. The company is currently searching for a new Chief Executive, Director of Opera and Music Director, following the departure of artistic director Jo Davies in August and Chief Executive Fiona Allan in January.

Allan reportedly left due to frustrations over the board’s handling of strategic issues such as touring to Melbourne during the theatre's closure.

Creative Australia has commissioned a governance review, led by corporate adviser Gabrielle Trainor. While the report has yet to be made public, industry sources suggest it is critical of the current board structure and decision-making processes.

Looking Ahead
Despite the turbulent year, Sims is optimistic about the road ahead. The 2025 summer season in Sydney delivered the company’s strongest box office on record in real terms, and Opera Australia now anticipates breaking even this year and returning to profit in 2026.

The strategy, Sims said, is not to slash budgets but to implement tighter financial discipline, increase planning rigor, and reduce the risk profile of commercial productions.

With $70.4 million in net assets and $106 million in revenue - of which nearly half came from ticket sales - Opera Australia remains a cornerstone of Australia’s cultural landscape. However, the company’s reliance on public funding ($28.7 million from federal and state bodies in 2024) underscores the need for sustainable operations amid a shifting cultural economy.

Image: Sarah Brightman in the ill-fated Opera Australia/GWB co-production of Andrew Lloyd-Webber’s Sunset Boulevard. Credit: Opera Australia.