KEY POINTS:
They might have form on the field, but rugby league club Brisbane Broncos Ltd has warned it faces a tough year financially after booking a 5 per cent slide in its calendar 2007 profit.
The Broncos, which claimed the premiership in 2006, booked a net profit for calendar 2007 of A$1.46 million ($1.68 million), compared to A$1.54 million achieved the previous year.
"The 2008 financial year will be challenging with the group's before tax expected profit down by approximately 50 per cent compared to 2007's actual result," the listed rugby league club said today.
The club faces increased costs associated from the National Rugby League's introduction of new youth competition, it said.
"The recruitment of coaching, support and playing staff, together with all other associated costs will have a significant impact on the group's bottom line," it said.
Gross revenue in 2007 increased from 2006 although its net profit finished down as a result of "a conscious decision to incur additional expenditure on football development and some income items received in 2006 in relation to the premiership victory", the club said.
The Broncos recorded an eight per cent increase in gross revenue for the 2007 financial year to A$24.78 million.
"This successful result can be attributed to continued growth in corporate and season membership sales, increased crowd attendances, sponsorship strength and the 20th anniversary year of the Brisbane Broncos," the club said.
"Significant growth of 24 per cent was experienced in corporate sales revenue in 2007 compared to 2006 which is likely due to the 2006 premiership win and also the standard of corporate facilities at Suncorp Stadium."
The Broncos will pay a final dividend of one cent.
Its shares were untraded on 23 cents today.
- AAP
