Forsyth Barr Stadium events contribute $32.5 million into Dunedin economy

October 6, 2023

Dunedin City Holdings Limited’s latest financial results highlight a $32.5 million cash injection from stadium events along with a strong rebound in passenger numbers at Dunedin airport, and a multimillion-dollar dividend for the Dunedin City Council.

The company’s results for the 2023 financial year show a group profit of $3.3 million for the 2023 financial year.

Dunedin City Holdings Limited (DCHL) Chairman Keith Cooper noted “that’s a solid result in what continues to be a challenging economic climate for our companies.

“Obviously we’re still seeing inflationary pressures at home, and a slowing Chinese economy contributing to increased volatility in key Asian export log markets, not to mention the tail end of COVID-19’s impact, so these are pleasing performances by most of our companies.”

Among the results, Dunedin Venues’ focus on building Southern pride and prosperity attracted more big events – from the All Blacks v Ireland test match to the Red Hot Chili Peppers with Post Malone, Rod Stewart and Six60 concerts – to Dunedin’s Forsyth barr stadium.

That, in turn, attracted 47,500 visitors from across New Zealand and overseas to Dunedin, together contributing $32.5 million of direct additional spend to Dunedin.

Cooper advised Dunedin Venues, which runs the stadium, recorded a small profit for the year and delivered on its purpose and added “given the disruption to major events caused by Covid-19, and the time it takes to rebuild from that, it’s a good result for our city.”

Dunedin International Airport (DIAL) also had a strong year, with over 920,000 passengers welcomed throughout the year – 86% of the company’s pre-Covid peak.

The company recorded a surplus of $4.3 million, well ahead of projections, Cooper says.

“That’s a strong result and one that will provide the company with a solid foundation to invest in further growth and development.”

DCHL also paid a dividend and interest payments totalling $11.4 million to the Dunedin City Council, representing a good result for ratepayers with Cooper noting “we are working hard not just to lift the performance of our companies, but to ensure they’re performing for all our residents.”

Elsewhere, major trading companies Aurora Energy, City Forests and Delta all recorded profits, while Dunedin Stadium Properties Limited and Dunedin Railways recorded losses.

Group debt increased over the year as forecast, reflecting increased capital expenditure by Aurora in its network and by the DCC.

Aurora’s result included substantial capital investment of $99.3 million on new network assets in Dunedin, Central Otago, Wānaka and Queenstown Lakes during the year, up from $83 million the previous year.

The company’s after-tax profit of $11.1 million was also better than expected and an improvement on the previous year.

City Forests’ after-tax profit of $5.5 million reflected market conditions overseas, while Delta’s profit was $2.6 million.

Dunedin City Holding Company reports

Image. Dunedin's Forsyth Barr Six60 concerts

20th June 2023 - Dunedin’s Forsyth Barr Stadium ‘ideal venue’ for WXV 1 rugby tournament

20th April 2021 - Super Rugby’s Highlanders to investigate fan injuries at Forsyth Barr Stadium

2nd November 2020 - Forsyth Barr Stadium extends naming rights sponsorship for 10 years

6th June 2020 - Dunedin’s Forsyth Barr Stadium ready to claim world first with return of fans

7th May 2019 - Forsyth Barr Stadium welcomes strong start to year

9th August 2018 - Forsyth Barr Stadium events contribute $55 million into the Dunedin economy

28th February 2018 - Full Forsyth Barr Stadium events calendar drives increased Dunedin Venues Management profit

6th September 2017 - Boom period for concerts at Dunedin’s Forsyth Barr Stadium

17th February 2017 - Four gyms now open at Dunedin’s Forsyth Barr Stadium

26th July 2016 - Diverse attractions underpin success of Dunedin’s Forsyth Barr Stadium

23rd September 2015 - Forsyth Barr Stadium welcomes more than a million event patrons

3rd August 2015 - Forsyth Barr Stadium looks for first annual profit

5th December 2014 - Dunedin ratepayers to continue Forsyth Barr Stadium subsidy

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