The Moose Jaw Events Centre saw a deficit of more than $600,000 in the third quarter of this year, which was almost 32 per cent less than budgeted for that period.
Meanwhile, the venue’s food and beverage sales saw a net profit of $321,972.
From Jan. 1 to Sept. 30, the Multiplex had actual revenues of $1,752,101 and actual expenses of $2,217,796.
While this led to an initial operating loss of $495,695, after including the $100 expense for Ticket Rocket gift cards, $142,371 expense for management fees and $2,850 in revenue from client building rentals, the venue finished the quarter with a deficit of $605,316. This represented a cost recovery rate of 74.24 per cent.
In comparison, building manager OVG360 had budgeted $1,434,891 in revenue and $2,188,572 in expenses, leading to an expected operating loss — after adding the management fee of $139,356 — of $882,911.
Therefore, the difference between the actual and budgeted income, expenses, and net loss was $317,210, $277,860, and $277,595, respectively.
Meanwhile, the Events Centre held 131 events over 130 days and saw a total paid attendance of 85,743 people. In comparison, OVG360 had scheduled 101 events over 100 days and expected to see 64,962 people.
City administration presented the third-quarter financial report during the Nov. 27 regular city council meeting. Included in the document was financial information about the Events Centre/Multiplex.
Council unanimously voted to receive and file the report.
“(The Events Centre finances are) trending under budget in terms of the expenditures for the facility and the overall subsidy required,” said finance director Brian Acker. “Certainly, (another) very strong positive for that facility is the food and beverage (services) area, where we see significant profits being made.”
Coun. Heather Eby questioned the net event revenue in the actual and budgeted categories — $79,409 and $349,132, respectively — saying there was “quite a variance” of minus-$269,722 between the numbers.
Meanwhile, she applauded the venue’s cost-recovery rate of 74.24 per cent, which was great for the building.
The Multiplex’s finance officer explained that budgeted figures are based on the number of live events that management expects to occur during the season. During the first three quarters of this year, OVG360 had budgeted for several activities, but they failed to pan out.
Food and beverage sales
From Jan. 31 to Sept. 30, OVG360 generated $1,130,192 in total concession and catering sales, while the total cost of goods was $340,815. This led to a total gross profit of $789,376.
After removing total payroll, total variable expenses, management incentives and management fee, the net profit was $321,972.
These numbers were based on 131 events that attracted 85,743 people during the three quarters of this year.
The next regular council meeting is Monday, Dec. 4.
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