Broncos expect corporate profit squeeze - Sports News - Fanatics - the world's biggest events

Broncos expect corporate profit squeeze

By Angela Harper 13/05/2009 04:04:06 PM Comments (0)

Brisbane Broncos crowds may be breaking records, but the global financial crisis is reining in profits at the club's corporate arm.

Brisbane Broncos Ltd chief executive Bruno Cullen said on Wednesday the company was yet to feel the full brunt of the crisis, which has led to a downturn in economic growth in Australia.

But while the sale of corporate boxes at its rugby league games was down, support from the fans has not waned.

"Season memberships are at record levels and we are averaging about 38,000 at games to date," he told AAP after the company's annual general meeting in Brisbane.

"The big impact will be in the corporate sector and that's sponsorships, corporate boxes, corporate suites, dining and entertainment, and next year we will see an impact in that area.

"When people are sitting down doing their budgets, one of the easiest things to cross out is a corporate box at the footy."

Chairman Darryl Somerville said crowd numbers were also breaking records with average numbers of more than 33,000 during 2008 - the highest average rugby league crowd in the national competition.

Although sponsorship was at its peak, recent bad press about the indiscretions of rugby league players did have the potential to taint that interest, Mr Somerville said.

Mr Cullen, who has led the company since October 2002 and whose tenure has been renewed until December next year, said the company so far hadn't lost any sponsorships due to the scandals.

The stock exchange listed Brisbane Broncos made a net profit of $1.24 million in calendar 2008, down 15 per cent from the previous year.

Revenue rose three per cent to $25.62 million.

Its shares currently trade at 32 cents, up from 24 cents this time a year ago.

The company did not pay a dividend in 2008 due to the global financial crisis.

Brisbane Broncos Ltd is 68.87 per cent owned by Nationwide News Ltd, with BXBX Pty Ltd holding 9.79 per cent and Lake Morpeth Pty Ltd 6.73 per cent.

Brought to you by AAP AAP © 2021 AAP

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