The Moose Jaw Events Centre/Multiplex — formerly Mosaic Place — experienced a deficit of nearly $250,000 during the second quarter of this year, although its in-house catering generated over $122,000 in net profit.
From April to June, the sports and entertainment venue had revenues of $1,136,974 and expenses of $1,294,481.
While this led to an operating loss of $157,507, after including $3,723 for Ticket Rocket gift cards, $89,569 in management fees and $4,400 for client building rentals, that loss finished at $246,399.
In comparison, building manager Spectra Venue Management Services had budgeted income of $1,043,119 and expenses of $1,346,834, with an overall net loss — after adding the management fee — of $303,043.
The Events Centre’s finances for Q2 were presented during the Sept. 12 regular city council meeting.
“This good performance in the first half of the year will be tempered somewhat, as the remainder of 2022 will see challenges around venue sponsorship revenues and the majority of maintenance costs come in (the) third quarter of the year,” a council report said. “(However), the food and beverage sales were positive and showed a net profit of $122,773 to the end of June.”
A successful quarter
Ryan MacIvor, Spectra general manager, told council that the Multiplex had a successful June and did well financially, partly because it did not originally have events scheduled that month. Spectra was unaware when it forecasted its 2022 budget that events like Jurassic Quest and Alice Cooper would come through.
The Events Centre has lower revenues in areas such as advertising and naming rights, while some expenses such as repairs and maintenance were shifted to the summer, he continued. However, the third and fourth quarters are on track.
“But yet, we are still looking at taking a caution approach due to the unpredictability of the live event business and return to the live events,” MacIvor continued.
“As our (hockey) season and our tenants start their business back up … we’ll get a better understanding of what that (revenue) might look like to get better predictability as we move into the last little bit here (of the year).”
MacIvor clarified that most live events are still unpredictable because venues are not seeing big crowds as before. He pointed to the Saskatchewan Roughriders, which have had only one game — Labour Day — sold out this season.
The general manager added that the venue’s cash flows remain a concern because of the timing of when money comes in for naming rights and goes out when gift cards are redeemed.
Food and beverage sales
During the second quarter, Spectra generated $592,056 in total concession and catering sales, while the total cost of goods was $195,659.
After removing payroll, variable expenses and management incentives, the net profit was $122,773.
These numbers were based on 104 events between April and June that attracted 64,781 people.
Council discussion
The Events Centre held several events this year, such as Alice Cooper and Jurassic Quest, Coun. Doug Blanc said. He wondered how those events did financially.
“We … made money on all those events,” said MacIvor.
Coun. Heather Eby was concerned that the actual revenue for suite club leases of $79,550 was lower than the budgeted $154,622. She wondered why and whether a new hockey season was the reason.
One reason is the timing of when revenue arrives, while another reason is Spectra is still discussing the matter with the Moose Jaw Warriors, said MacIvor. While some suite leases expire this year, the Warriors have given suite tenants a one-year extension because of the pandemic.
The Events Centre has a multi-band concert coming on Saturday, Nov. 19 — featuring Lonestar, Sawyer Brown, George Canyon and Doc Walker — and tickets are selling “extremely well,” MacIvor told council.
Spectra is looking to meet and exceed the performance’s services and is in good shape to do that, he added. The management company is also working to attract other concerts out there.
The next regular council meeting is Monday, Sept. 26.
