Dunedin Venues' annual report for 2017-18 showed the company made a $602,000 after-tax profit in the year to June 30, up from $299,000 the previous year.
Dunedin Venues chief executive Terry Davies said the ''stellar year'' reflected the string of significant events staged at the stadium during the period.
That included an All Blacks Bledisloe Cup test match, but also concerts by Stevie Nicks and The Pretenders, Roger Waters, Robbie Williams and three massive shows by Ed Sheeran.
The success of those events was reflected in visitor statistics, which showed more people (263,000) attended music concerts at the stadium than Highlanders or All Blacks rugby fixtures (133,700) during the period.
Mr Davies said that showed the venue's success in diversifying its business in recent years, which also reduced the financial risk to ratepayers should it miss out on any one event, like an All Blacks test.
''You'd never have dreamt those sorts of numbers coming through for concerts four years ago. It was always rugby-dominated. It shows a shift in the business.
''We need to sustain that. We want that to be the model.''
The profit was a ''good result'' that would be reinvested into the business, covering maintenance and improvements and allowing it to grow, he said.
''We're not sitting on our hands. We're looking to improve our business all the time.
''We need to deliver surpluses to get to where we want to be.''
Rugby remained an important part of the stadium mix, but the venue still needed to be used more, and draw bigger crowds more often, he said.
''We've still got a way to go yet.''
Despite that, he was confident the days of the company's deficits were over.
''There's no way we would do that.
Putting all your eggs in one basket is high-risk, and we're trying to spread that risk.''
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Gross or net?
Really? Partial truth! Have they covered the loan interest and interest on cash used to build the stadium (ie PWC's $300m cost estimate as the DCC did not know how much it cost to build)? Answer- no. The interest alone is $15m p.a. -but that is not in the 'account' above.
Come on OtagoIdeas you are raining on the parade, but I love it, keeping them grounded and honest, somebody has to do it the DCC will not, it is a shame it has to be one of the public and not one of there own.
My question is the profit, what was the profit before any bonuses were paid to staff and how much were this bonuses and spreadd amongst the staff. Times are hard and they need to make tuff calls- I say lets be transparent and open the books after all it really is a Rate payers asset who own the debit. all be-it there are a couple of fire walls between the rate payers and the truth. Putting it out there if they can't be transparent with this look what is up the road around the bend, on the horizon - its the harbour development and it too will make the rich richer and the rate payers poorer.
Thanks Rtn2Dun Like your comment. I also like the harbour development plan and will keep pushing that private or govt money owns each enterprise there, not the DCC. Unlike the stadium with its limited sport and pop events we can ALL enjoy a harbour with a university research hub/aquarium, leisure pools, cafes, fishing, public spaces, ferry dock. It will be for rich and poor to enjoy 7 days a week.
Thankyou Otagoldeas. Its so easy to believe what you read in the headlines (or company annual reports). As one who arrived after the stadium was built but will pay for it forever- locals need to be reminded of the truth.
I assume this $602,000 profit is already minus the $15 million in interest payments for this year?
I think this is the venue management company only (DMVL). I think DMVL's assets do not include the stadium, and DMVL's debts do not include the loan to pay for the stadium, and DMVL's expenses do not include the interest on the debt to pay for the stadium. So, this news should not be taken to mean that the Stadium venture as a whole is profitable for Dunedin, just that the *management* of that large asset owned by another branch of the council is profitable. If the stadium debt is about 350 million and the interest rate is about 4%, and they are paying down debt using a 10-year level loan, then interest is about $15 million and repayment of principal is about $25 million per annum. So, a $600K profit is a drop in the bucket.
Clearly the new management team, after years of losses are on the job.
However, with Christchurch's new stadium now in the pipeline, sadly you can say goodbye to any more big acts, ie The Eagles, from playing Dunedin anymore.