Page 26 - Annual Report 2016

FINANCIAL ANALYSIS FINANCIAL ANALYSIS

2. Revenue 3. Expenditure
An analysis across the key revenue areas of the Association • Sport Operations increased against the previous period Generally, an increase in revenue is accompanied by an • The decline in Member Services is caused by the
highlights a number of notable points for consideration. primarily due to the Sporting Schools program being increase in expenses and that has been the case for the reclassification of QTF employed development staff, as
operational for a full period; Association over this period. noted above. The Member Services category represents
• As expected membership revenue was relatively steady grants directly allocated to NQTA, CQTA and SCFBDTA
against the previous periods. A 6.5% increase in junior • The most notable increase across the revenue lines A brief analysis of the 2016 expenditure follows: for the development of the sport in those regions by
affiliation offset a minor decline in senior affiliation and was to Commercial Activity. The acquisition of Premier those regions and are consistent with previous years;
led to a slight increase overall; and City Touch is a key driver of this. The absorption • An increase in operating expenses is a natural
of Brisbane Touch Football operations has also had a occurrence given our growth. The relocation to the • Commercial activity expenses relate solely to the
• There is significant uplift in event income for this marked impact on commercial revenue; new Rugby League Central building and the increase inclusion of Brisbane Touch Football and the Premier and
period due to the biennial State of Origin Series and the in staff increases our operational expense. There are City Touch competitions for the first time.
movement of the Junior Tour from December 2015 to • Interest shows a zero value in this graph as it has been two additional noteworthy features of the operating
January 2016. This sees a significant variation occur with transferred to Other Income. Refer to Note 7 of the expenses. The first is the inclusion of depreciation for
no revenue accounted for in 2015. financial statements. this period where previously it has been accounted for 2015 Expenditure Breakdown
as a stand-alone item. The second is the inclusion of
an amortisation expense relating to the acquisition of 3% 7% HR
Key Revenue Areas the commercial competitions which has been noted 9%
previously and further explained in the Notes to the member services
Financial Statements. 33% events
21%
• The increase across Human Resources has been a operating expenses
result of a number of factors. The largest has been the 27% sport operations
reclassification of QTF employed development staff
previously accounted for in Member Services. This commercial activity
correction along with the inclusion of Brisbane Touch
Football and Premier and City Touch staff account for
the increases against 2015. While an increase in expense 2016 Expenditure Breakdown
has occurred, the percentage allocated to this area
remains steady at 33% of expenditure. 8% HR
8%
• Event expenses primarily relate to the inclusion of the 8% member services
Junior Tour and State of Origin, neither of which were 34% events
featured in the 2015 period. There is also a notable
increase in Elite 8 expenses which has two parts. The 9% operating expenses
first is the treatment of contra from sponsorship which 33%
was previously excluded from the activity’s expense; this sport operations
is offset by an equal increase in sponsorship revenue. commercial activity
Figure 2 - Key Revenue The second is an investment decision by the organisation
to increase resources and support for the program. Figure 5 - 2015 v 2016 Expenditure Chart

In 2015, the organisation highlighted some of the risks Membership has reduced from 35% to 24% and revenue Key Expenditure Areas
associated with a reliance on the three main revenue from grants has reduced by 9%. Under a full period of
streams. The investment into commercial competitions, commercial competition revenue, the percentage of these
despite the competitions only trading for the October to traditional revenue lines will decrease further and along with
December quarter, has diversified the revenue considerably it our reliance upon them.
and reduced our risk.

2015 Revenue Breakdown 2016 Revenue Breakdown

1% 1% 6% 1% 7%
7%
membership sport operations membership sport operations
35% 27% 20%
29% grants other grants other
29% events interest 24% 21% events interest
commercial commercial

Figure 3 - 2015 v 2016 Revenue Chart
Figure 4 – Key Expenditure

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