Arena is set for 'unique' profit; Showcase turns early losses into a win-win result.

Byline: BY DAVID BARTLETT Daily Post Chief Reporter

LIVERPOOL'S waterfront Echo Arena and BT Convention centre is on track to make a profit in its first full year of operation despite a pounds 860,000 loss in its first three months.

Chief executive Bob Prattey said the fact it would make a surplus in its first full year would make it "probably unique in Europe" for a venue of its type.

Arena and Convention Centre (ACC) Liverpool's accounts for the year to April 2008 show the venue lost pounds 861,007, but the Echo Arena had only been in operation since last January and the BT Convention Centre did not open until late April.

Last night Mr Prattey said the loss was in line with the budget and was the natural consequence of the fact the venue was, for most of the financial year to March 08, a building site which was not in operation.

"Few people realise that the vast majority of venues of this type in the UK and Europe make an ongoing deficit but are subsidised because of the economic benefits they bring to a city," said Mr Prattey.

"ACC Liverpool will in this regard be almost unique. Not only that, but for any business of this nature to make a surplus in the first full year of operating is a significant achievement.

"I know from my own experience elsewhere in the industry that most venues take a number of years before they break even so we are delighted with the current position.

"We fully expected to make an operating loss in the financial year to March 08 because we were in the build period but still had to carry significant staff and overhead costs.

"This year (08/09) both parts of the business are performing in line with expectations thanks to a fantastic sales effort and a rigorous approach to cost management."

In July last year it was revealed the Echo Arena and BT Convention Centre was pumping pounds 3m a week into the city's economy.

It's first year in operation was boosted by the city's Capital of Culture celebrations and hosting the BBC Sports Personality of the Year Awards and the MTV Europe Awards.

ACC Finance Director Gerald Andrews added: "The city is in a win-win situation: it has one of the best venues of its type, delivering thousands of new visitors to the city and millions of pounds in economic benefit every month, while delivering an operating surplus."

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