Enmax Centre posts year over year losses according to KPMG report

According to the report, in 2018, the Enmax Centre held 189 events over 212 days, representing just 58 per cent space utilization. While attendance has increased over the last five years, the average number of attendees only reached 13 per cent of the Enmax’s nominal capacity, and nearly half of those going to the Enmax Centre for events are from outside of the city.

In 2018, according to pg. 58 of the report, the Enmax Centre brought in $9,700,000 in reported revenue. However, it was also funded $1.8 million by taxpayers and its operating loss was $1.7 million.

The report also indicates “The Enmax Centre is forecasting revenue for 2019 (is) 17 per cent lower than 2018, and no growth over the three years after that.” It also states, “Taxpayers subsidized the Enmax Centre’s operations by nearly $8 million from 2014-2018,” something Strain acknowledges.

“At different times throughout its history, it’s operated somewhere between 70 to 85 per cent on cost recovery, which means it’s being subsidized, or tax supported through 15 to 30 per cent every year,” he explained. “So, we need to fill that building. That means we need to be a promoter. Literally, we’re bringing in concerts… and we’re putting every event on there on the backs of tax support. So, the question is, is that what the community wants? Is there another model?”

The building – if financial forecasts are correct – will likely lose millions of dollars more over the next few years. According to the report, there is “no business strategy or marketing strategy that articulates priority market opportunities, long-term growth objectives and supporting initiatives.”

Further, “the business plan is not focused on growth, and achieving profitability oriented key performance indicators such as utilization, revenue per seat, controlling administrative and operating costs and service line profitability.”

In the Executive Summary (pg. 7) KPMG says a fundamental shift will be required in how the Enmax Centre is not only governed, but also managed – and it “will need to be held accountable for doing so.”

Strain says the City is taking the suggestions contained in the report seriously, and the hope is to turn things around.

“I think things have evolved over time…I’m going to call it a maturation of the system and that’s why we’re looking at it now, and we’ll make sure the right things moving forward are in place.”

Some of the suggestions for improvements include the development of a small 1,000 theatre to host productions that are too large for the Yates Theatre, but too small for the full arena, the implementation of a new ticketing system, an air conditioning system upgrade, charging for parking during Hurricanes games and other measures.

by Lara Fominoff

Enmax Centre posts year over year losses according to KPMG report

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