Esplanade posts losses for first time

SINGAPORE — The Esplanade continues to be a beehive of activity that draws in the crowds with its arts events. But for the first time in its 12-year history, it has incurred an operating deficit.

The arts centre, which released its annual report for its last financial year ending March 2014, announced a loss of S$2.3 million compared with its previous financial year’s income of S$136,874 (after expenditure).

This, despite racking up relatively similar numbers in terms of audience attendance and activities from the previous year. Last year, the Esplanade offered a total of 2,920 events which drew 1.8 million people, compared with the 3,054 events and 2 million people the previous year.

The loss has been attributed primarily to the drop in sponsorship and donations, down to S$4.35 million from S$6.04 million the previous financial year. Most glaring has been the reduced number of new sponsors. In the financial year ending March 2013, there were 113 sponsors and donors, which included 59 new ones. This year, the total number has been halved to 49 sponsors, which included only eight new ones.

“Corporations are increasingly tightening their expenditure, while we are also facing increased competition from other charitable causes and new venues. We will have to seek and nurture a new body of sponsors who are open to less commercial presentations and who would be supportive of our efforts,” said Esplanade’s chief executive officer Benson Puah, who however noted that the bumper crop of sponsors for the previous financial year had also been due to the centre’s 10th anniversary celebrations.

Its annual report also cited a drop in venue income as one of the factors: It fell to S$6.24 million from S$7.4 million the previous financial year. This was due to a change in the profile of hirers, which were local productions “that have shorter runs, smaller inventory, lower ticket prices and sales”.

Said Puah: “More local arts, community and school groups are hiring our venues with Esplanade’s support, but these bring lower revenues compared with the commercial musicals and entertainers that are now presented at the more commercial venues.

“Additionally, factors such as the changes in foreign labour laws have also led to significantly higher third-party costs for us.”

Nevertheless, he said the Esplanade — which includes both its performing venues and the mall — has reached a “steady state of operations”.

“As the national performing arts centre, our primary objectives have to do with social and artistic goals beyond the purely financial and commercial considerations, and it is not our place to compete with others in the industry,” he added. “Looking ahead, we will continue to evolve and deepen our programming to reach more audiences and encourage lifelong engagement with the arts among our community.” Mayo Martin