Theatre’s rousing performance nets €260,000 profit
Despite the recession, the theatre made €260,000 for the financial year ended Mar 31 last, the company’s AGM was told yesterday.
It is a remarkable turnaround in the fortunes of the theatre which had to be rescued from the brink of financial collapse in 2010 — just two years after it made a modest profit of €49,000.
In May 2010, Cork City Council — the theatre’s largest shareholder — had to step in with a €1m interest-free loan to rescue it.
Within weeks, the theatre announced an enforced summer closure as part of a radical survival plan.
Following a major strategic review, it adopted a three-year business plan which slashed €500,000 from its annual budget and resulted in cuts to staff wages along with several redundancies.
The city council subsequently extended its €1m loan by a further €250,000, wrote off an €800,000 loan by converting it to grant aid, and guaranteed a €1.5m bank loan.
The venue lost €800,000 in 2010 but, by last year, had stemmed the losses, posting a loss of €180,000.
However, board chairman Damian Wallace said he was delighted yesterday to tell the AGM that, despite the challenging economic conditions, the theatre had posted a €260,000 profit.
“The benefits of the restructuring and consolidation of recent years are now paying dividends and reflects the commitment of the board, staff, and key stakeholders to maintain progress and retain the Opera House as a key player at the core of arts and entertainment in the region,” he said.
The turnaround was due to constant oversight and prudent financial management, the willingness of staff to embrace change, and the quality and mix of the artistic programme, overseen by Opera House chief executive, Mary Hickson, he said.
The critically acclaimed in-house production last summer of The Sound of Music, together with the Christmas pantomime, Alice in Wonderland, were key to the theatre’s financial success.
The foyer cafe is contributing to the company’s finances, and the fostering of links and relations with major artistic promoters in Ireland and Britain was also crucial.
Mr Wallace said the continuing support of Cork City Council and increased funding from the Arts Council remain hugely important.
But he singled out the Opera House staff for particular praise.
“The employees at all levels deserve great credit for their professionalism and commitment to excellence and their willingness to continue to adapt to the changing needs of the business,” he said.
CEO Mary Hickson, who began her five-year contract three years ago next month, said it was a proud day for everyone involved with the theatre.
“It has been big challenge and a big undertaking. It has been a rocky road at times but we are all really proud of the achievement,” she said.
Striking the balance between commercial reality and artistic integrity, and tweaking the theatre’s offering in response to market trends were critical to the theatre’s strong financial performance, she said.
Challenges remain and strong financial management will continue to ensure the theatre remains in a sound financial position, the AGM was told.
Almost 170,000 people attended 354 performances in the Opera House in the 12 months up to last March — resulting in major spin- offs for the city economy.
Up to 100 people were employed by the venue during its biggest shows last year.
