Operating profits down by 60pc at Thomond Park firm
Published 09/06/2016 | 02:30
The failure by Thomond Park to repeat the revenue-generating success of the Bruce Springsteen concert contributed to operating profits at the stadium firm more than halving to €116,000 last year.
But revenues rose by 10pc from €2.13m to €2.35m as the full year income from the operation of the stadium bars was realised.
Operating profits at Thomond Park Stadium Company Ltd decreased by 60pc from €286,000 to €116,000 in the 12 months to the end of June last.
Stadium Manager John Cantwell said yesterday that "the lack of a concert type event has a significant impact on revenues/profits that cannot be readily replaced by other events".
The stadium is the home to Munster rugby and Mr Cantwell said that Thomond Park benefited from the staging of the Bruce Springsteen concert in the prior 2013/14 financial year.
Mr Cantwell also said profits were down due to the fact that the stadium hosted an European Champions Cup quarter final in 2013/14 whereas it was a PRO 12 semi-final in 2014/15 which would not have generated as high an income for the company.
Mr Cantwell said that he is expecting profits to reduce further this year as the stadium didn't host any additional matches such as the Pro12 semi-final or the Ireland v Barbarians match that were held in the prior year.
"We are happy with the performance of the company in 2014/15 as we attracted additional events to the stadium," he said.
"Within the year ending 30th June 2015, we hosted the Limerick 7s and the Ireland v Barbarians rugby match which both contributed to the cash-flow profit. We continue to work in a difficult economic climate and are looking at all options with a view to growing the company's profits."
The company during the year recorded a post tax loss of €1.25m. The €1.25m loss included non-cash depreciation costs of €1.37m.
On the cancellation of the planned Andy Lee world title defence bout at the stadium last year, Mr Cantwell said: "We worked extremely hard to secure this event and the cancellation was a major loss for Thomond Park and Limerick.
"We negotiated a compensatory venue fee and the promoters honoured this agreement. The financial impact was still significant in terms of revenues projected from food and beverage."