BRONCOS PROFIT TAKES A BEATING

RUGBY league has taken another beating today, through the full year results of Brisbane Broncos Limited (ASX: BBL).

The company more than halved its after tax profit for its financial year ended 31 December 2014.

The figure was $831,700, down from a 2013 result of $2.03 million. Earnings per share also declined by more than half, down 59 per cent to 0.01c per share.

This is despite the company's revenue increasing 8.1 per cent to $37.8 million.

BBL attributed a revenue boot to the increased Club Grant as well as growth in sponsorship, membership, casual gate income and in-house merchandise sales.

Home game attendance for the "club with the biggest fan base" was up 10.2 per cent on the year prior and sponsorship revenues grew nine per cent, inclusive of Broncos TV Insider and website sponsorship.

The company is being supported by almost 30 sponsors across five tiers, with NRMA Insurance being the principal sponsor on a three-year term to 2016. That being said, BBL expects "conservative spending in the Australian sponsorship industry to continue into 2015".

Expenditure for the company also increased 14.2 per cent to $36.6 million.

Increased costs included higher player salaries in line with the increased salary cap, as well as an investigation into potential salary cap breaches which Deloittes later found the club not to have breached.

The company notes "another tough year" of coaching and player restructuring, including replacing head coach Anthony Griffin.

"In recent years, there has been a successful focus on building the front-office capability of the business and while our on-field efforts have been brave and determined we have not had the results we need to drive the overall business as we would wish," says BBL chairman Dennis Watt.

"Even so, last year we recorded record revenues; record merchandise; record sponsorship; record membership and an average gate attendance, which at 10.2 per cent on the previous year, remains the best in the game.

BBL renewed its hiring agreement with Suncorp Stadium in this period for an eight-year term with a review date at four years.

BBL is paying a fully franked dividend of half of 1c per share.