Just yesterday, Brisbane Broncos’s captain Adam Reynolds left fans holding their breath as he limped off the field, only to be later cleared of any serious injury. However, the real excitement for Broncos enthusiasts lies off the field, as the NRL team reports an uptick in profit and an array of revenue streams that contributed to its financial success.
The management arm of the NRL teams, Broncos Limited (ASX: BBL), informed that the profit before tax for the Group, for CY23, is expected to surge approximately 70% to 80% above the 2022 result of $4.7 million. This financial leap is attributed to the stellar performance of the NRL and NRLW teams during the 2023 season, culminating in Grand Final and Semi Final appearances, respectively.
The surge in on-field achievements translated into a boost across various revenue streams. Average crowds, memberships, ticketing, merchandise, and corporate sales revenues all saw an upswing compared to the prior reporting period. Increased consumer activity and higher attendance also led to a rise in game day and stadium operating costs.
A significant factor contributing to the financial upturn was the increased grant from the NRL, aligned with the NRL Funding Agreement, the expanded NRLW season, and associated funding. The overall football operational costs escalated due to player salary increments, investment in the football program, and the success of the 2023 finals series.
In the first half of CY23, the Company’s total revenue reached $39.15 million, marking an uptick from $30.66 million in the same period in 2022. Breaking down the revenue streams, the NRL grant stood out at $9.27 million, reflecting a 21.5% increase, in line with the NRL club funding agreement and NRLW grant funding. The inclusion of an extra NRL home game in the first half of 2023 also contributed to the growth in game day revenue.
Broncos saw a 42.4% increase in revenue generated from membership and corporate programs, an extra home game, and more people attending games during the 2023 season. The average crowd increased to 35,100 from 27,751 in the first half of 2022.
The revenue from season memberships was based on eight NRL home games, one more than in 2022. Total memberships, including both ticketed and non-ticketed, reached 42,162, a substantial increase from 31,902 in 2022.
Sponsorship revenue saw a marginal decrease of 5.3%, attributed to changes in partnership categories and the timing of NRLW sponsor benefits. However, merchandise trading revenue saw an increase to $1.79 million, up from $0.92 million in 2022, fueled by improved supply chain conditions and an additional home game in 2023.
Game development revenue doubled to $1.04 million due to expanded programs in Queensland. Government funding increased by 30.3%, driven by the growth of Brisbane Broncos community initiatives. Finally, its interest revenue rounded out the diverse revenue streams, showcasing an increase for the period ending on June 30, 2023. This was reflective of an increase in the average investment amount and average interest rate.
As the audit finalisation looms, the Broncos’s focus is getting Reynolds back in form and on the field in time for the season opener.
Alinda is a Business Reporter for The Sentiment
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