NZRU reports $9.6 million profit for 2011
The New Zealand Rugby Union today announced an improved bottom line result for the 2011 financial year of $9.6m, boosted by a successful World Cup.
This was a turnaround from the 2010 loss of $9.4m.
"We are satisfied with our overall financial performance in the face of economic conditions which continue to be the most challenging our organisation has faced for many years," said NZRU Chairman Mike Eagle.
The 2011 result was largely made up of RWC 2011 foreign exchange gains of $13.4 million and an operating loss of $3.1m.
The foreign exchange gain reflected the reconciliation between agreed payments from tournament organisers to the NZRU and the value of the sterling held to meet the NZRU's share of the tournament host fee.
"We have managed to contain our tournament costs to what we forecast in 2005 as well as mitigating the foreign exchange risks," Eagle said.
"The tournament itself was an outstanding success on many levels and obviously winning RWC 2011 was the icing on the cake for our organisation. We do expect long term benefits from our investment in Eden Park, as well as the enhanced commercial value of the All Blacks brand."
Chief Executive Steve Tew said the NZRU continued to face pressure on its revenue streams from economic conditions and the high New Zealand dollar, so posting an operating loss of $3.1m which was in line with budget and similar to the 2010 figure was a satisfactory result.
"We are budgeting to break even in 2012. In recent years, we have run operating losses which have been financed from our strong reserve position. While this is not sustainable in the long term it has been critical in allowing us to maintain our investment in the game and to assist provincial unions in these difficult times," Tew said.
The NZRU provided $18.6m in funding to provincial unions and Super Rugby franchises in 2011, similar to levels provided in 2010.