RDS benefits from venue upgrade as revenues rise 26%

The Dublin Horse Show cost the RDS Eur3.6 million to run last year and broke even. The RDS has spent Eur5.9 million upgrading its facilities in the past couple of years, including a major revamp of its showgrounds for sporting events.
Photograph: Aoife Rice/Sportsfile

REVENUES AT the Royal Dublin Society (RDS) rose by 26 per cent to €16.6 million in 2007 as the Ballsbridge-based group reaped the benefits of a major upgrade of the 42-acre venue, according to figures released to members.

The RDS's annual report, which was sent to its 5,000 members this week, shows that the society made a "surplus" of €1.3 million last year. This was down from €1.7 million in 2006 and reflects ongoing investment in facilities.

"We had a very strong year on the commercial side and we also reaped the benefits of the refurbished sports arena," chief executive Michael Duffy told The Irish Times.

Mr Duffy said turnover was bolstered by Leinster rugby using its main arena for its home Heineken Cup and Magners League games; by the letting of a newly built 50,000sq ft office block; and by strong revenues from concerts, conferences and exhibitions.

"We've seen an increase in concert business and family entertainment business since the Point depot closed [ for refurbishment]," Mr Duffy said.

The RDS has spent €5.9 million upgrading its event facilities in the past couple of years.

This included a major revamp of its showgrounds for sporting events.

It is now an 18,500-capacity, all-seater arena with floodlights, a relaid pitch, and new seating and dressing rooms. It is now used as a home venue by Leinster and Lansdowne rugby clubs and played host to the FAI Cup Final in soccer last year.

This summer, the arena will host concerts by Bruce Springsteen, Boyzone and Linkin Park.

The society also spent €34.5 million building two office blocks on its Simmonscourt site.

Its annual report shows that the RDS earned €676,000 in rent from the offices last year, presumably from Irish Distillers, its first tenant.

Mr Duffy said three other tenants were close to being secured for the offices. "The first block is more or less sublet at this stage," he added.

The RDS's accounts show that its commercial revenue in 2007 was €15.1 million.

Membership subscriptions amounted to €550,000, while other income was €221,000.

On the expenses side, payroll costs rose by more than €500,000 to €4.5 million. Its operating expenses amounted to €6.5 million, while general overheads were €2.5 million.

Costs associated with the letting of the Simmonscourt office were €418,000 and the society booked a depreciation charge of €1.1 million relating to the office building.

The Dublin Horse Show, which is held every August, cost €3.6 million to run last year and broke even.

Last year also saw the RDS launch its own online ticketing service.

About 1.8 million people attend events at the Ballsbridge venue each year and it is hoping to generate revenue by selling tickets directly.

© 2008 The Irish Times

This article appears in the print edition of the Irish Times