NZRU back in the black
The New Zealand Rugby Union has posted a $9.6 million bottom-line profit for 2011.
The late Jock Hobbs would have been very pleased.
The New Zealand Rugby Union is back in the black, posting a $9.6 million bottom-line profit for 2011, a welcome turnaround after losing almost the same sum the previous year.
But without the Rugby World Cup the union would have been more than $3m in the red.
"We are satisfied with our overall financial performance in the face of economic conditions which continue to be the most challenging our organisation has faced for many years," NZRU chairman Mike Eagle says.
He says the result was largely made up of Rugby World Cup foreign exchange gains of $13.4m and an operating loss of $3.1m.
"It's pleasing that the costs of our investment in RWC 2011 have come out as expected. We have managed to contain our tournament costs to what we forecast in 2005 as well as mitigating the foreign exchange risks.
"The tournament itself was an outstanding success on many levels and obviously winning RWC 2011 was the icing on the cake for the organisation.
"We expect long term benefits from our investment in Eden Park as well as the enhanced commercial value of the All Blacks brand," he says.
Chief executive Steve Tew says the NZRU continues to face pressure on its revenue streams from current economic conditions and the high New Zealand dollar so posting an operating loss of $3.1m which was in line with budget and similar to the 2010 figure is a satisfactory result.
He says the NZRU will shortly be announcing "several significant sponsor renewals and that is a strong sign of confidence in our commercial model".
The union is budgeting to break even in 2012.
Rod Vaughan
Wed, 11 Jul 2018
Wed, 11 Jul 2018
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NZRU back in the black
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