BRONCOS PROFIT TAKES A BEATING

Written on the 27 February 2015

BRONCOS PROFIT TAKES A BEATING

RUGBY league has taken another beating today, through the full year results of Brisbane Broncos Limited (ASX: BBL).

The company more than halved its after tax profit for its financial year ended 31 December 2014.

The figure was $831,700, down from a 2013 result of $2.03 million. Earnings per share also declined by more than half, down 59 per cent to 0.01c per share.

This is despite the company's revenue increasing 8.1 per cent to $37.8 million.

BBL attributed a revenue boot to the increased Club Grant as well as growth in sponsorship, membership, casual gate income and in-house merchandise sales.

Home game attendance for the "club with the biggest fan base" was up 10.2 per cent on the year prior and sponsorship revenues grew nine per cent, inclusive of Broncos TV Insider and website sponsorship.

The company is being supported by almost 30 sponsors across five tiers, with NRMA Insurance being the principal sponsor on a three-year term to 2016. That being said, BBL expects "conservative spending in the Australian sponsorship industry to continue into 2015".

Expenditure for the company also increased 14.2 per cent to $36.6 million.

Increased costs included higher player salaries in line with the increased salary cap, as well as an investigation into potential salary cap breaches which Deloittes later found the club not to have breached.

The company notes "another tough year" of coaching and player restructuring, including replacing head coach Anthony Griffin.

"In recent years, there has been a successful focus on building the front-office capability of the business and while our on-field efforts have been brave and determined we have not had the results we need to drive the overall business as we would wish," says BBL chairman Dennis Watt.

"Even so, last year we recorded record revenues; record merchandise; record sponsorship; record membership and an average gate attendance, which at 10.2 per cent on the previous year, remains the best in the game.

BBL renewed its hiring agreement with Suncorp Stadium in this period for an eight-year term with a review date at four years.

BBL is paying a fully franked dividend of half of 1c per share.

 


Latest News

THE STAR'S STUNNING ANSWER TO CROWN'S BARANGAROO

THE Star Entertainment Group (ASX:SGR), not to be outdone by James Packer's Barangaroo development across the ...

BRISBANE COAL TERMINAL REOPENS AFTER SHIPLOADER REPAIR

COAL loading has recommenced at New Hope's (ASX: NHC) Brisbane terminal today after repairs to its ship loader, w...

SUPERYACHTS OFFER UNTAPPED POTENTIAL AT COMMONWEALTH GAMES

SUPERYACHT Australia has devised a strategy to attract more superyachts to Queensland and capitalise on revenue op...

GDP FIGURES A 'WAKEUP CALL' FOR PARLIAMENT

THE GDP figures are an end-of-year wakeup call for Parliament about what lies ahead for the country, according to ...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter