The Moose Jaw Events Centre — formerly Mosaic Place — saw a deficit of almost $600,000 in the fourth quarter of 2022, nearly $120,000 less than budgeted for that period.
From Jan. 1 to Nov. 30, 2022, the sports and entertainment venue had actual revenues of $1,991,771 and actual expenses of $2,417,197.
While this led to an operating loss of $425,426, after including the $8,500 expense for Ticket Rocket gift cards, $163,727 expense in management fees and $4,400 in revenue for client building rentals, the venue finished with a net loss of $593,253. This represented a cost recovery rate of 77.17 per cent.
In comparison, building manager OVG360 — formerly Spectra Venue Management Services — had budgeted income at $1,937,549 and expenses at $2,484,795, leading to an expected overall net loss — after adding the management fee of $163,770 — of $711,016.
Therefore, the difference between the budgeted and actual income, expenses and net loss was $54,222, $67,598 and $117,764.
City administration presented the fourth-quarter financial report during the Feb. 27 regular city council meeting. Included in the document was financial information about the Events Centre/Multiplex.
Council later unanimously voted to receive and file the report.
The report noted that a full financial statement to Dec. 31, 2022, was unavailable because the Events Centre was working on its year-end audited statements.
When asked where the Events Centre’s final revenues and expenses could finish, general manager Ryan MacIvor replied that the venue could come under budget. He noted that the budget could have a surplus of $916,000.
Another council question focused on how much money was still outstanding with the Ticket Rocket gift card situation. Finance director Brian Acker replied that the Events Centre had issued $185,000 worth of gift cards to affected patrons, with people using $52,000 to attend other events and roughly $131,000 yet to be redeemed.
Food and beverage sales
From Jan. 1 to Nov. 30, 2022, OVG360 generated $1,135,570 in total concession and catering sales, while the total cost of goods was $371,268. This led to total gross sale profits of $764,302.
After removing total payroll, total variable expenses, management incentives and management fee, the net profit was $214,028.
These numbers were based on 190 events that attracted 109,691 people during the 11 months in 2022.
This report presents some “favourable results” for the Multiplex with its budgeted subsidy versus what it may actually need, Acker said. Further, to have a net profit on the food and beverage side of more than $200,000 is significant.
The next regular council meeting is Monday, March 13.
