London’s O2 Arena has defied the recession and announced a 35 per cent increase in net profits on revenues which rose 5 per cent to £62.8m in the year ending December 31 2012.
It is the highest recorded revenue by the O2 since it opened as an arena in 2007. The boost was fuelled by high-profile events including the 2012 Olympic gymnastics and sell-out concerts from the Rolling Stones and Robbie Williams.
Sarah Brooks, the O2’s finance director, said: “The increase in revenue in the year is mainly due to the Olympic and Paralympic rental of the arena.”
The total running costs of the 23,000-seat arena fell by £28,000 to £40.9m, thanks to tight cost control. It helped boost profits by £15.5m, which in turn benefits the taxpayer as the state has a share in profits with the former Millennium Dome owners.
American sports marketing group Anschutz Entertainment Group (AEG) took over the venue from the Government in 2002. Under the deal AEG received the land for free in return for agreeing to pay the Treasury 15 per cent of the venue’s net profits for 25 years.
AEG invested £400m in redeveloping the arena and took on £144.8m of bank debt which is due to be paid by July 2018. The deal paid off as the Greenwich venue is now the world’s most popular arena selling more than 2m tickets last year.
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