The Moose Jaw Events Centre saw a deficit of more than $620,000 in the fourth quarter of 2023, nearly $102,000 less than budgeted for that period.
From Jan. 1 to Nov. 30, 2023, the sports and entertainment venue had actual revenues of $2,249,233 and actual expenses of $2,699,903.
While this led to an operating loss of $450,670, after including the $100 expense for Ticket Rocket gift cards, $173,992 expense in management fees and $4,725 in revenue from client building rentals, the venue finished with a net operating loss — the amount it needs to be subsidized — of $620,037. This represented a cost recovery rate of 78.26 per cent.
In comparison, building manager OVG360 had budgeted income at $2,090,704 and expenses at $2,654,611, leading to an expected overall net loss — after adding the management fee of $170,324 — of $721,856.
Therefore, the difference between the budgeted and actual income, expenses and net surplus was $158,529, $45,292 and $97,094.
These numbers were based on 179 events over 189 days that attracted 117,213 people.
City administration presented the fourth-quarter financial report during the Feb. 26 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, 2023, was unavailable because the Events Centre was working on its year-end audited statements.
“At the end of November, everything was looking very good,” said finance director Brian Acker, noting it was also “very good” that the actual subsidy was $620,037 instead of $721,856.
Said Mayor Clive Tolley, “I’m very pleased with the improvement in revenues coming from the Moose Jaw Events Centre and their work contributing to reducing the deficit, so that’s very good news.”
Food and beverage sales
From Jan. 1 to Nov. 30, 2023, OVG360 generated $1,509,154 in total concession and catering sales, while the total cost of goods was $469,374. This led to total gross sale profits of $1,039,781.
After removing total payroll, total variable expenses, management incentives and management fee, the net profit was $416,643.
These numbers were based on 179 events that attracted 117,213 people during the 11 months of 2023.
The next regular council meeting is Monday, March 11.
