Sell-out gigs by pop superstars, Beyonce and Ed Sheeran at the 3Arena last year were not enough to prevent pre-tax profits at the firm that operates the venue declining by 50% to £2.5m (€3.6m).
New accounts just filed by the UK-based and Live Nation-owned Apollo Leisure Group Ltd (ALGL) show that the firm’s pre-tax profits reduced from £5m to £2.5m.
The firm recorded the drop in pre-tax profits after revenues decreased by 8% going from £16.73m to £15.35m in the 12 months to the end of December last year.
An exceptional cost during the year of £1m concerning the write-off of monies due from a connected firm contributed to the sharp reduction in profit.
Music giant Live Nation purchased the remaining 50% stake in the 3Arena Amphitheatre Ireland Ltd firm from Nama for £29.3m in 2013.
Figures from trade industry journal, Pollstar record that 470,875 music fans flocked to the 14,500-capacity 3Arena last year.
However, the detailed 2014 figures don’t take account of a number of shows including Elton John, Peter Gabriel and Madness in December or those who attended the Conor McGregor bout last July.
Beyonce generated a cool €1m per night in box office receipts for her four-gig stint at the 3Arena last year, while Ed Sheeran generated over €2m in box office receipts from the 51,332 fans who attended his four sell-out gigs at the 3Arena in October.
The venue reports in euro, while its owner reports in sterling.
The single most lucrative night at the 3Arena last year was Andrea Bocelli where his gig on November 14 last year generated over €1.1m.
The ALGL accounts show that last year’s gigs attracted an average percentage capacity of 81% compared to 82% in 2013.
According to ALGL, the firm’s operating profits last year decreased by 37% going from £5.26m to £3.3m.
Net interest payments of £773,193 reduced the profits to £2.55m. The firm’s corporate tax bill totalled £596,631.
The company’s accumulated profits at the end of last year totalled £25.2m while its cash pile decreased from £9.5m to £7.64m.
A note attached to the accounts confirms the company “has significant net assets, is profit making and has a considerable cash balance.
The group’s forecasts project it will continue to trade profitably.
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