Queensland Rugby Union posts fifth consecutive profit

Fri, Feb 16, 2024, 2:48 AM
by Queensland Rugby Media Unit

The Queensland Rugby Union today announced earnings before interest, tax and depreciation and amortisation (EBITDA) of $455,336.

The result does not include $14.1 million in Government capital grants towards the construction of the new BMS National Rugby Training Centre at Ballymore. It compares to a $1,075,763 EBITDA result in the previous year, reflecting a reduction in funding from Rugby Australia and investment in resources to complete the NRTC building and precinct redevelopment.

The QRU’s operating profit, including depreciation and interest expenses, was $75,365, compared with a $722,459 operating profit in FY22. The QRU’s statutory profit of $14.156 million included the recognition of Government funding.

QRU chief executive officer David Hanham said the result demonstrated the ongoing sustainability of the QRU, which was now underpinned by the redevelopment of Ballymore.

“The redevelopment of Ballymore, through the opening of the BMS National Rugby Training Centre and renovation of Rugby House, has enabled the QRU to achieve sustainable financial success and stability independent of the Reds’ on-field performance,” he said.

“The QRU has turned Ballymore around from costing the organisation in excess of $1 million per annum to close to break-even, before our predicted event and function revenue.

“Precinct event revenue will continue to grow, with significant demand for stadium events and functions within the NRTC and surrounds.

“Despite a reduction in funding from Rugby Australia, and an increase in expenses to enable the re-opening and operation of Ballymore, the QRU has maintained its fiscal discipline and remains profitable.”

Income-generating capital works on the Ballymore precinct and NRTC saw short-term debt increase to $2.4 million. The QRU chose to bring forward to 2023 its $1.5 million, five-year commitment to the NRTC construction and precinct works.

In the coming years the QRU will receive more than $600,000 annually in contracted, long-term revenues from Ballymore leases alone, which underpins the cost of precinct operations and supports debt reduction.

“This sustained success is reflected in the confidence of our partners, such as global insurers BMS Group who have signed a four-year agreement as our principal partner and NRTC naming rights partner,” Mr Hanham said.