Ticketmaster New Zealand, which has a controlling interest in the soon-to-be-renamed Vector Arena, turned to an annual loss in 2015, despite revenue growing, with operating expenses spiking.
The consolidated accounts, which cover Ticketmaster and its controlled entities Live Nation NZ, EVENZ, NZ Venue and Event Management, QPAM and Quay Park Arena Management Trust NZ, showed the company booked a $309,000 loss in the year to Dec. 31, 2015, compared to a profit of $770,000 in 2014.
Consolidated operating revenue rose 39 percent to $21 million, while cost of sales advanced 50 percent to $10.8m and operating expenses rose 54 percent to $10.5m.
Operating costs were driven by a 34 percent increase in employee expenses to $3.3m, while operating lease rentals rose from $228,000 in 2014 to $1.1m in the year. Unspecified other expenses doubled to $2.8m.
Ticketmaster's parent company is Ticketmaster Australasia, and its ultimate parent entity is United States-based Live Nation Entertainment. In 2015, the local company paid just under $6 million to related parties primarily in licence fees to US-based Ticketmaster Entertainment as well as support service fees to Ticketmaster UK, while it received $780,000 from related parties.
After reporting the loss, Ticketmaster received an income tax benefit of $50,000.