RFU Unveils Record Revenues With 25% Rise

The England rugby team’s string of poor form prior to the World Cup does not
seem to have affected the RFU’s finances with the governing body announcing
record annual revenues of £103.7m, up 25% on the previous year.

The results for the year ended June 2007 saw revenues up significantly from
the 2006 figure of £82.7m and operating profits up 73% to £28.1m.

Profit margin also increased to 27 % while total net worth increased in the
year by £12.6m to £134.6m, with record retained profits of £13.4m, further
consolidating the governing body’s financial progress seen in recent years.

Revenues, which exceeded £100m for the first time in the RFU’s history,
included record levels for ticketing and hospitality as a result of the
continuing strengthening of the England Rugby brand and the additional capacity
available following the successful completion of the new South Stand at
Twickenham stadium; ticketing revenues included six matches at the new capacity
of 82,000.  

Broadcasting revenues were also at record levels and this, combined with the
performance on ticketing and hospitality, helped offset the weakness in
merchandising and licensing revenues, which are very sensitive to the
performance of the England team.  Also included in total revenues were the
results of the successful first full year’s trading of England Rugby Travel. 

The continuing growth in turnover enabled the RFU to invest record sums in
the community game, with increased investment in refereeing and coaching,
together with the first phase of the ‘Go Play Rugby’ recruitment campaign which
has had a very positive start.

Following the success of the England team in the World Cup, merchandising
revenues in the first half of this financial year have recovered strongly and
have matched the record levels seen following winning the World Cup in 2003.

England Rugby Travel has also had an excellent first half year selling travel
packages to England supporters attending the World Cup that included in excess
of 14,000 match tickets generating over £7m worth of profitable new business for
the RFU.

The RFU will also benefit from the increased capacity of Twickenham stadium
and the increased awareness and profile of the game following the World Cup.

Furthermore, with the new hotel, conferencing and leisure facilities in the
South Stand development due to open in 2008, new revenue streams will be
available for further investment in the game.