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Revenues Decreased At Dublin's Gate And Bord Gáis Energy Theatres Last Year

Published on Nov 12 2021 11:10 AM in General Industry tagged: Trending Posts / Gate Theatre / Edward MacLiammoir Dublin Gate Theatre Productions DAC / Bord Gáis Energy Theatre / Crownway Entertainment Ltd

Revenues Decreased At Dublin's Gate And Bord Gáis Energy Theatres Last Year

Revenues decreased at Dublin's Gate and Bord Gáis Energy theatres last year.

Gate Theatre

As reported by The Irish Examiner, the Gate Theatre recorded operating losses of €509,868 last year, according to accounts for Edward MacLiammoir Dublin Gate Theatre Productions DAC, which show that theatre box office revenues decreased by 85% last year from €3.17 million to €449,231 due to a COVID-19 pandemic-related shutdown.

The directors reportedly stated that the operational loss of €509,868 last year followed an operating surplus of €398,025 in 2019 - a negative swing of €907,893.

Due to the closure of the theatre in March of 2020, audience numbers at the Gate Theatre reportedly decreased from 99,187 to 14,980 last year as the number of shows staged reportedly decreased from 11 to three.

The directors reportedly said that "the impact of the Gate Theatre of COVID-19 was financially devastating" in 2020, and reportedly stated that the operational loss of €509,868 was before taking into account Arts Council stabilisation funding of €501,969.

The total Arts Council funding for 2020 reportedly amounted to €1.77 million.

After taking Arts Council funding and other income into account, the company reportedly recorded a modest deficit of €7,899.

Addressing the theatre company's going concern status, a note attached to the accounts reportedly stated that the funding position of the Gate has become increasingly difficult during and subsequent to 2020 due to the COVID-19 pandemic.

The board in order to alleviate the going concern risk reportedly stated that it has entered talks with the Arts Council and will apply to the Arts Council Emergency Stabilisation Fund later in the year if necessary to meet liabilities as they fall due.

The Gate Theatre's total income for 2020 was reportedly €2.86 million. This reportedly includes €250,938 in North America box office income, philanthropic funding and sponsorship of €292,961 and COVID-19 wage subsidy scheme payments of €46,351.

The theatre has reportedly been "dark" since March 11 of 2019 and is reportedly due to reopen on December 1 for a run of the "pop-up" Christmas adventure, Mabel’s Magnificent Flying Machine.

Samuel Beckett's Endgame is reportedly due to be staged next February.

The directors reportedly stated that as a response to the closure of the theatre in 2020, substantial voluntary cuts were made in staff costs from April onwards.

34 staff were reportedly laid off, reportedly leaving a skeleton staff in place, and all activity except for essential repairs and statutory obligations reportedly ceased.

The directors reportedly stated that the absence of box office receipts and further anticipated production losses for 2021 due to continued restrictions will cause additional pressures on working capital as the organisation plans for a staged return to normal operations.

The directors reportedly stated that the impact of the COVID-19 pandemic and subsequent mandated closures has highlighted the vulnerability of the Gate’s business model that is dependent on box office revenue.

At the end of last December, the Gate Theatre reportedly had shareholders' equity of €276,119. The theatre's cash funds reportedly increased to €862,434.

The Gate's Artistic Director and CEO, Selina Cartmell, is reportedly due to step down from her role next March at the end of her five year term.

Bord Gáis Energy Theatre

Meanwhile, as reported by The Irish Times, revenue at the Bord Gáis Energy Theatre decreased by 74% last year to €2.753 million due to the pandemic.

Accounts filed by Crownway Entertainment Ltd reportedly show that the theatre recorded a pre-tax loss of €2.15 million following the sharp decrease in revenue.

In 2019, it reportedly posted a pre-tax profit of €816,802.

The theatre reportedly went dark in March of 2020 due to the government's COVID-19 restrictions and reportedly reopened in September.

The Book of Mormon is reportedly currently being staged, and upcoming events reportedly include The Lion King, Les Misérables, Carmen, Tommy Fleming and Chicago.

Global music events and venue operator Live Nation runs the 2,111-seat venue and the shutdown of the business reportedly resulted in a €7.9 million revenue hit for the Crownway subsidiary in 2020.

Ticket sales and other revenue reportedly decreased by €5.88 million to €2.2 million, while food and beverage sales reportedly decreased by €2.06 million to €549,879.

The €2.15 million pre-tax loss reportedly includes combined non-cash depreciation and amortisation charges of €1.26 million along with interest payable and other charges of €526,674.

The accounts reportedly disclose that during 2020 cumulative interest of €3.24 million owed on shareholder loans to the profit and loss account as equity was released.

The €3.24 million in equity - reportedly offset by post-tax losses of €2 million and dividends of €63,452 - reportedly resulted in the company’s accumulated profits increasing by €1.14 million to €1.37 million at the end of last year.

At the end of last December, the company reportedly had shareholder funds of €11.97 million. Its cash funds reportedly increased from €2.79 million to €7.58 million last year.

Staff numbers reportedly decreased from 44 to 35, and staff costs reportedly decreased from €1.84 million to €1.39 million

The Bord Gáis Energy Theatre company reportedly received €389,755 in government COVID-19 grants, reportedly made up of €257,200 in temporary wage subsidy scheme payments, €72,555 in employment wage subsidy scheme payments and COVID-19 restrictions support scheme of €60,000.

Crownway is reportedly a private family investment company owned by John and Bernie Gallagher.

It reportedly acquired the theatre in 2014 for €29.1 million. Businessman Harry Crosbie reportedly opened the theatre in 2010 but reportedly lost control of the property after his loans were reportedly transferred to Nama.

© 2021 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.

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