The SECC's earnings before interest, tax, depreciation and amortisation (EBITDA) were £2.5m, which was ahead of expectations and £1m up on a like for like pre-tax basis.
Turnover for the group was reported at £29.5m, an increase of 9% on the previous year. The figures were boosted by new commercial income streams and a final account generated for the completion of the car park development on site.
The Scotsman newspaper reported on 25 July, however, that SECC Chief Executive, John Sharkey, took a 13 per cent pay cut despite the return to profit at the venue. The SECC is majority owned by the City Council which last year commissioned Deloitte to review what some critics had claimed was a confusing system of pay incentives and bonuses for top executives.
Next to the SECC, the £125m SSE Hydro is due to open on 30 September with a concert from Rod Stewart, despite a fire in its roof last month. Both venues will be at the heart of the 2014 Commonwealth Games. Its economic impact would increase by £130m a year after the Hydro is opened.
Sharkey has projected a jump in EBITDA to over £9.5m in 2014/15 on the back of the Commonwealth Games and said sponsorship and hospitality revenues from the Hydro will be nearly £2m in 2013/14 and just under £3.5m in 2014/15. He added the SECC’s sponsorship contracts for the Hydro were worth nearly £2.7m, nine times the original target.