Halifax Metro Centre Business Plan 2013/14

Transcription

1 Halifax Metro Centre Business Plan 2013/14 CONTENTS Message from CEO & the Chair 2 Operating Overview 3 Budget Context & Summary Priorities & Activities 6

2 Message from the CEO & the Chair On behalf of the management and Board of Directors of Trade Centre Limited (TCL), we are pleased to present the business plan for the Halifax Metro Centre (HMC). As the operators of the Halifax Metro Centre for 35 years, we understand that its success lies in precision event delivery combined with strong partnerships. The activities of HMC are predicated on the value of the relationships we form and our commitment to service excellence. Through our knowledge of the event industry and direct experience planning the region s largest major events, HMC has built a national reputation. HMC plays a vital role in raising the profile of our capital city while enriching the vibrancy of our community. This year we will be celebrating a major milestone - the 35th anniversary of the Halifax Metro Centre. We are very proud of our ability to attract and host more than 15 million patrons to a vast array of exemplary entertainment, community and sporting events over the last 35 years while also being able to provide these experiences in a financially and operationally responsible manner. As the venue where our community gathers to celebrate and be entertained, and where visitors come for the most exciting events our city has to offer, we look forward to ensuring that the Halifax Metro Centre continues to support Halifax s overall position as the economic hub of Atlantic Canada. Yours truly, Scott Ferguson President and CEO Justin McDonough Chair, TCL Board of Directors The Halifax Metro Centre is essential to achieving the long-term vision to position Halifax and Nova Scotia as Canada s East Coast event destination on the global stage. We will continue to build on the solid foundation of local, national and international partnerships that allow us to secure the biggest names in entertainment coupled with an array of sporting and family events to please a wide audience. 2

3 Operating Overview Located in the heart of downtown, HMC 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. As a critical element of TCL s ability to attract highcalibre 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 souvenir revenues as well as sponsorships and premium product rentals. 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 over approximately 125 event days. Since , HMC has welcomed approximately 2.6 million guests to its events. HMC is owned by the Halifax Regional Municipality (HRM) and operated by TCL, a provincial Crown Corporation. Its 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. 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. Forecasted financial results for the current fiscal year ( ) for Halifax Metro Centre are an operating income of $338,000 on revenues of $7.4M as compared with budgeted operating income of $55,000 on revenues of $6.7 million. In , Halifax Metro Centre expects to generate revenues of approximately $6.9 million, resulting in operating income of $106,000. 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. 4

5 Operations Budget Summaries (For the year ended March 31) Budget ($) Forecast ($) Budget ($) Revenues 6,683,900 7,419,000 6,888,000 Expenses Event operations 2,963,200 3,292,000 2,894,000 Salaries and benefits 1,993,900 2,134,000 2,180,000 Building operations & 1,421,800 1,346,000 1,433,000 maintenance Administration/ 250, , ,000 Marketing Total expenses 6,628,900 7,081,000 6,782,000 Income for the year 55, , ,000 Note 1: Halifax Metro Centre is a facility owned by the Halifax Regional Municipality (HRM) and operated by Trade Centre Limited 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 2013 internal financial statements 5

6 Priorities & Activities HMC s strategic focuses are consistent and aligned with the organization s long-term vision to position Halifax and Nova Scotia as Canada s East Coast event destination on the global stage. For , our focus will be the effective delivery of our core business and the key relationships and partnerships that will maximize event attraction efforts. 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. Our team of people is the driving force of successful event delivery and customer service, and as such, a motivated team with a focus on service excellence is a continued priority of HMC. Consistent with our commitment to accountability and organizational effectiveness, and following the planned review in of the HMC operating agreement, collaborative efforts with HRM will continue to finalize the new operating agreement and implement the agreed to practices. 6

7 Priority: Financial Sustainability Optimize core business activities to result in breakeven financial position Revenue generation Achieve total revenue of $6.9M Host 105 events with total attendance of 450,000 over 135 event days Effectively manage and deliver on current major tenant contracts with Halifax Mooseheads and Halifax Rainmen Meet overall revenue goal for premium product of $2.3M Generate sponsorship/advertising revenue of $1.0M Operating efficiency Manage event expense ratio to no more than 44% of revenues Review core operating activities and contracts to identify further efficiencies without impacting customer experience 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 Develop five-year event attraction approach for sport and entertainment sectors Secure marquee event for 2014/15 Priority: Infrastructure Manage and enhance infrastructure to deliver a positive customer experience Facility Repairs & Upgrades Completion of identified infrastructure Prioritize and implement facility maintenance priorities renovation and improvement activities Develop multi-year approved capital priorities plan Digital Display Network Customer Feedback Optimization of digital display program Receive feedback from premium seating customers on service and amenities Develop and implement a program for LED screens to enhance customer experience and support revenue generation from advertising and menu displays at concession areas Conduct premium seating customer surveys to measure satisfaction with baseline 7

8 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 Completion of employee satisfaction survey Define succession plans for critical roles Capture baseline measure of employee satisfaction drivers Continuation of succession planning approach Priority: Community Partnerships Implement a consultative approach to develop key partnerships based on common objectives to support business, community and economic development Community partnership Development and implementation the 35th Anniversary Program Develop and execute a year long calendar of activities to celebrate the 35th anniversary Engage tenants, major corporate and media partners to promote and enhance the events throughout the year Corporate partnership Pursue naming rights partner Finalize timeline with HRM to begin the process of selecting a naming rights partner Issue a RFP for naming rights partnership Evaluation and selection of naming rights partner Priority: Governance Ensure operations demonstrate accountability to the communities and shareholder we serve Accountability Compliance with interim HMC operating agreement Delivery of accountability activities as outlined in the HMC operating agreement 8