Thomond Park company sees loss of €1.5m despite 40% hike in revenues

REVENUES at the company that operates Limerick’s €40 million Thomond Park increased last year by 40% as the firm recorded a post-tax loss of €1.5 million.

The revamped stadium is the home of Munster Rugby and accounts just filed with the Companies Office by Thomond Park Stadium Co Ltd (TPSCL) show the company’s post-tax losses rose by 12% to €1.5m in the year to the end of last June.

This was in spite of TPSCL increasing revenues from €2m to €2.8m in its first full year of operation.

Stadium Director John Cantwell yesterday explained that the loss is due to a depreciation charge of €1.39m and bridging interest payments of €259,000.

A post-tax loss of €1.3m in 2009 was also made up of a depreciation charge and bridging interest payments.

Mr Cantwell said that TPSCL recorded a cash-flow profit last year of €180,000 before exceptional items.

“This was well ahead of our budgeted break-even,” he said.

However, Mr Cantwell said that after exceptional items, TPSCL recorded a cash-flow loss of €120,000.

He declined to identify the exceptional items.

In an interview, Mr Cantwell said: “We are very happy with the financial performance of the company for the financial year to the end of June 2010.”

He confirmed that revenues are expected to decrease by 8% or €224,000 in the current financial year due to the stadium not staging FAI matches, which were held in 2009-10 but not replicated this year.

However, Mr Cantwell said TPSCL’s revenues this year will not suffer due to Munster’s failure to reach the knock-out stages of the Heineken Cup as there was an Amlin Home semi-final to replace it.

The accounts show TPSCL received €1.6m in licence fee income from Munster Rugby in the 2010 fiscal year. “The overall economic impact of events hosted at Thomond Park Stadium is €131.8m for Limerick City and region in the past two years,” said Mr Cantwell. “The estimated return to the exchequer from such activity is in the region of €23m.