SARU coining it

Fri, 05 Apr 2013 13:40
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The overall position remains reasonably healthy

The South African Rugby Union reported a group profit before taxation of ZAR6.2 million for the year ended 31 December 2012.

This was announced at the organisation's Annual Meeting in Cape Town on Friday.

Group revenue rose to ZAR689 million, up 15 percent from the 2011 level of ZAR597 million, due mainly to an increase in income from broadcasting rights, sponsorships and home Tests - which were typically depressed in the 2011 World Cup year.

That rise was offset by group operating expenditure, which increased by 20 percent, largely due to costs associated with the hosting of the Test in Soweto and the IRB Junior World Cup (six percent), national teams (four percent), development of the game (four percent) and staffing costs (three percent) following the operational restructuring in late 2011.

"The overall position remains reasonably healthy - despite the macroeconomic situation," said Jurie Roux, CEO of SARU.

"However, cash reserves [ZAR10 million], are significantly lower than those of the previous year, due partly to an increase in loans and advances to and amounts receivable from provincial unions, and partly to non-recurring capital expenditure incurred mainly on the relocation to new premises."

Roux added that SARU had budgeted for a modest rise in revenues in 2013, although there would be a commensurate increase in expenses.