MOOSEJAWTODAY.COM — For the first time in a while, the Moose Jaw Events Centre experienced a first quarter that was positive financially, while in another first, its cost recovery rate exceeded 100 per cent.
From Jan. 1 to March 31, the sports and entertainment venue had actual revenues of $867,852 and actual expenses of $817,401, for an operating gain of $50,451.
However, after including the $172 expense for Ticket Rocket gift cards and $49,424 for building manager OVG360’s management fee, the net operating income was $856. Overall, this represented a cost recovery rate of 100.12 per cent, meaning the Multiplex paid its bills using generated revenues instead of taxpayer subsidies.
In comparison, OVG360 had budgeted $759,199 in revenues and $845,697 in expenses, leading to an expected operating loss — after adding the management fee of $48,302 — of $134,800. This would have represented a cost recovery rate of 84.92 per cent.
Therefore, the difference between the actual and budgeted income, expenses and net income was $108,653, $28,296 and $135,655, respectively.
These numbers were based on 58 events over 52 days and a total paid general attendance of 59,022 people.
City administration presented the first-quarter financial report during the May 13 regular city council meeting. Financial information about the Events Centre/Multiplex was included in the document.
Council later unanimously voted to receive and file the report.
Food and beverage sales
From Jan. 1 to March 31, OVG360 generated $684,181 in total concession and catering sales, while the total cost of goods was $229,153. This led to a total gross sales profit of $455,027.
After removing total payroll, total variable expenses, management incentives and management fee, the net profit was $260,781.
These numbers were based on 58 events and 55,608 people attending those events.
Council comments
Coun. Heather Eby was shocked that the Events Centre had such a high cost-recovery rate because she had never seen anything like that since joining council; yet, it was still good news. While that rate likely wouldn’t be as high at the end of 2024, she hoped it remained close.
City manager Maryse Carmichael said that two reasons the venue did so well during Q1 were that it held several concerts and the WHL Warriors did well during the regular season.
Coun. Jamey Logan was also “super happy” to see that the Multiplex had achieved a 100-per-cent cost-recovery rate, which he pointed out was based on the Warriors having only one playoff game in March. He thought the venue’s financial report for the second quarter — April to June — would be much more interesting after factoring in the remaining playoff contests.
The next regular council meeting is Monday, May 27.
