RFU sees huge profit increase
Profit was boosted by more Test matches at Twickenham.
Thursday, 29, Oct 2009 02:53
By Will Haine.
The Rugby Football Union (RFU) has announced its annual financial results, which includes a significant increase in both profit and turnover.
The results benefited from the hosting of seven Test matches at Twickenham in 2009, compared to five the previous year.
This change saw turnover increase by 20 per cent to £119.2 million and operating profit rose by a substantial 66 per cent to £31.3 million. This meant that pre-tax profit soared to £9 million, compared to a loss of £500,000 12 months ago.
Despite a 40 per cent drop in matchday hospitality spending during the Six Nations, created by the onset of the recession, action was taken by the RFU management board to mitigate the decline.
This "prudent action" saw the RFU's net worth increase by six per cent to £150.7 million.
"These results demonstrate a good performance in a difficult year," said RFU finance director Nick Eastwood.
"The RFU results always benefit in those years when we have three home Six Nations games and a fourth autumn international.
"As we look at the current year with only five Test matches and continuing challenges in the corporate market we remain cautious and are managing our business accordingly."
RFU chief executive Francis Baron outlined their plans for the future: "Our strategic goal is to develop new revenue streams to limit the dependence on any one area.
"With the opening of the Marriott hotel, the Virgin Active health club and the new conference and events facilities in the new South Stand a major step in this direction has been taken.
"We have a vision to turn Twickenham into a 365-day-a-year business and it is pleasing to see we are already making progress towards this goal."