Halifax Metro Centre

Transcription

1 Halifax Metro Centre Business Plan 2014/15 CONTENTS Message from CEO & the Chair 2 Operating Overview 3 Budget Context & Summary Priorities & Activities 6

2 Message from the CEO & the Chair With a 35 year history, the Halifax Metro Centre (HMC) is a hallmark of event activity in the region. A landmark for community vibrancy and pride, HMC has helped create countless memories and is part of the fabric of Halifax s downtown core. This coming year will be no exception. With a full slate of marquee events, HMC will ignite our community and generate excitement among our customers. Our strategy is deliberate and rooted in the long-term vision to position Halifax and Nova Scotia as Canada s East Coast event destination on a global stage. With a supportive community, we will embark on a naming rights program that will see enhancements that will mark the next phase of HMC. We will improve the facility to ensure it continues to meet the evolving expectations of our customers and we will work collaboratively with our partners and our community to meet our goals. We will manage our operations in an open and transparent manner to maintain public and stakeholder confidence. We will execute on strategies and activities that align with the expectations of the Halifax Regional Municipality (HRM) and position HMC for continued success. As we reflect on our long history of success, we must also turn our attention to the future and ensure that this facility continues in its role as a gathering place where we celebrate, cheer and connect. The Halifax Metro Centre plays a critical role in supporting Halifax s overall position as the economic hub of Atlantic Canada. We look forward to defining our future potential and creating experiences and memories for years to come. Yours truly, Scott Ferguson President and CEO Justin McDonough Chair, TCL Board of Directors 2

3 Operating Overview Located in the heart of downtown, the Halifax Metro Centre is the largest multipurpose facility in Atlantic Canada, serving as the region s premier venue for major entertainment and sporting events and the nucleus of major event activity in Nova Scotia. Specifically designed for versatility and to accommodate some of the largest events, HMC offers a diverse lineup of event experiences; it remains a critical piece of major event infrastructure and is essential to event success in Nova Scotia. With a seating capacity of up to 10,000 and the versatility to accommodate a range of events, HMC offers a variety of event experiences annually. With anchor tenants including the Halifax Mooseheads, the Halifax Rainmen, and the Royal Nova Scotia International Tattoo, HMC hosts on average 500,000 attendees each year. HMC is owned by HRM and operated by Trade Centre Limited (TCL), a provincial Crown corporation. Our focus is on ensuring the professional and effective delivery of events that drive community and economic impact. All operating income or losses generated by HMC accrue to HRM and all capital improvements are funded by the municipality. As a critical element of TCL s ability to attract high-calibre events to Halifax, infrastructure renovations and enhancements continue to be a priority to ensure the facility meets client needs, thereby attracting a mix of events consistent with customer expectations. The mix of events hosted in any given year has a direct impact on the profitability of HMC s operations. Primary revenue drivers for the facility include event, concession and merchandise revenues as well as sponsorships and premium product leasing and rentals. 3

4 Budget Context & Summary TCL, as operator of HMC, continues to focus on ensuring the professional and effective delivery of events that result in economic and community impact while identifying cost efficiencies where they are available. HMC faces unique challenges from a budget and financial management context in that the facility was created as an economic and community facility for HRM. Our focus is on attracting events that create the most significant economic and community return to the city. With an emphasis on optimizing event mix, sustaining premium product and sponsorship revenue and on delivering on customer expectations while ensuring operational efficiency, HMC will continue to achieve a sustainable breakeven operating financial position. Areas of risk to the sustainability of this financial goal are the operation and maintenance of an aged facility as well as uncertainty around event mix and corresponding event attendance. To remain competitive, HMC must invest in the business for the long-term and lever its unique operating model. This means that investments in marketing, human resources, facilities repairs, capital infrastructure, and enhanced and new customer service offerings are critical. These investments must be both tactical and strategic in nature. Without these investments, HMC will be unable to meet customer expectations, which will erode our market share in an increasingly competitive environment and negatively affect our contribution to the community of HRM. Forecasted financial results for the current fiscal year ( ) for Halifax Metro Centre are an operating income of $131,000 on revenues of $7.5 million, as compared with budgeted operating income of $106,000 on revenues of $6.9 million. In , Halifax Metro Centre expects to generate revenues of approximately $7.4 million, resulting in operating income of $241,000. 4

5 Operations Budget Summaries (For the year ended March 31) Budget ($) Forecast ($) Budget ($) Revenues 6,888,349 7,486,965 7,404,405 Expenses Event operations 2,894,063 3,114,448 2,956,300 Salaries and benefits 2,180,000 2,268,000 2,420,900 Building operations & 1,433,069 1,467,200 1,430,500 maintenance Administration/ 275, , ,600 Marketing Total expenses 6,782,132 7,355,748 7,163,300 Income for the year 106, , ,105 Note 1: Halifax Metro Centre is a facility owned by HRM and operated by TCL under a management agreement. All operating income accrues to HRM, and all capital improvements are funded by HRM. Note 2: forecast per Halifax Metro Centre s February 2014 internal financial statements. 5

6 Priorities & Activities HMC s strategic focuses are consistent and aligned with TCL s long-term vision to position Halifax and Nova Scotia as Canada s East Coast event destination on the global stage. Key business activities are rooted in the following strategic priorities: financial sustainability, business growth, infrastructure, people, community partnerships and governance. For , our focus will continue to be the effective delivery of our core business and the key relationships and partnerships that will help us maximize event attraction efforts. The successful delivery of marquee events during the year will support our ability to achieve financial and economic impact targets. In addition, event attraction efforts will focus on future opportunities to ensure that we continue to deliver a strong and varied mix of event activity that attracts customers and generates community pride and impact. Moving forward with plans to secure a corporate naming rights partner in collaboration with HRM will ensure the Halifax Metro Centre is equipped to continue to deliver a product that aligns with customer and community expectations. Priority enhancements as well as key measures of success for this program will be identified through consultation with our customers and our partners. The proactive management of facility infrastructure renovations and upgrades is essential to ensure the facility meets both the customer and safety standards necessary for continued event attraction and hosting. Through the naming rights program, infrastructure updates that fall outside of routine capital maintenance will be prioritized and planned. A key differentiator of HMC is our people, our experience and our customer service excellence. Our team is the driving force of successful event delivery. Our internal focus will be on activities that maintain this service standard with our motivated team of professionals. Consistent with our commitment to accountability and organizational effectiveness, we will operate in full compliance with the HMC operating agreement in place with HRM with a focus on primary business deliverables and ongoing collaboration. We will continue with agreed practices and work in partnership with HRM to mitigate areas of risk and plan for the future of HMC. 6

7 Priority: Financial Sustainability Optimize core business activities to result in breakeven financial position. Revenue generation Achieve total revenue of $7.4M Host 120 events with total attendance of 525,000. Effectively manage and deliver on current major tenant contracts. Successfully deliver on marquee major events. Generate premium product, sponsorship and advertising revenue of $3.4M. Operating efficiency Economic impact Manage event expense ratio to no more than 44% of revenues Generate economic impact consistent with prior years Implement technology improvements that support efficiency. Document critical operating processes. Host 120 events with total attendance of 525,000. Successfully deliver on marquee major events. Priority: Business Growth Identify strategic opportunities for business growth to increase revenues and generate economic and community impact. Event attraction Activate targeted approach to event attraction Implement year 1 of five-year event attraction strategy for sport and entertainment sectors. Customer experience Implement mobile ticketing enhancement Roll-out mobile ticketing technology in conjunction with Ticket Atlantic. Develop and activate communications plan. 7

8 Priority: Infrastructure Manage and enhance infrastructure to deliver a positive customer experience. Facility Repairs & Upgrades Complete necessary improvements under capital maintenance program Implement year 1 of multiyear capital priorities plan with a focus on food and beverage/concession expansion. Naming Rights Program Approval of naming rights capital priorities Finalize naming rights capital priorities. Develop project plan. Priority: People Invest to develop a high performance workforce that supports the evolution of HMC s business and position in the events industry. Effective, engaged and accountable culture Implement employee engagement survey recommendations Define and activate key activities in response to employee engagement survey. Define succession plans for critical roles Continuation of succession planning approach as required. 8

9 Priority: Community Partnerships Implement a consultative approach to develop key partnerships based on common objectives to support business, community and economic development. Naming Rights Program Naming rights partner secured Participate in HRM procurement process to ensure optimal corporate partnership results from evaluation and selection of naming rights partner. Finalize agreement with naming rights partner and gain approval. Naming Rights Program Effective and successful transition to naming rights partnership Activate community and stakeholder engagement process to identify priority areas for investment and determine measures of success. Develop and activate communications program to transition and announce naming rights partner. Priority: Governance Ensure operations demonstrate accountability to the communities and shareholder we serve. Accountability Compliance with HMC operating agreement Delivery of accountability activities as outlined in the HMC operating agreement. 9