28 February 2022

To: ASX Company Announcements Platform

BRISBANE BRONCOS LIMITED AND ITS CONTROLLED ENTITIES 2021 FINANCIAL RESULTS

Please find attached the following documents in relation to the 2021 financial results for Brisbane Broncos Limited and its controlled entities ("the Group"):

  • Earnings Release
  • Appendix 4E - Preliminary Final Report
  • 2021 Financial Report
  • Independent Audit Report and Auditor's Independence Declaration

Yours faithfully

Brisbane Broncos Limited

Louise Lanigan

Company Secretary

BRISBANE BRONCOS LIMITED

(ABN 41 009 570 030)

EARNINGS RELEASE FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2021

Brisbane, 28 February 2022

FINANCIAL PERFORMANCE

Result for the year

The Group recorded a net profit after tax for the 31 December 2021 financial year of $2,897,260 compared to a net loss after tax of $376,227 in 2020. Profit / (loss) before tax for the 2021 and 2020 financial years were $4,257,300 and ($469,200) respectively. Earnings Before Interest, Tax and Depreciation (EBITDA) increased from $693,160 in 2020 to $5,473,440 in 2021.

The 2020 financial year result reflected the unprecedented negative impact that Covid-19 restrictions had on the Group. The whole of the NRL competition was adversely affected, with only the first round of the 2020 NRL Telstra Premiership played to regular crowd attendances. The 2020 season was suspended on 24 March 2020 and recommenced on 28 May 2020. The Venue restrictions in the prior period impacted the Group's 2020 commercial operations through home game related shortfalls and the inability to deliver all contracted game day benefits. This resulted in a reduction in commercial revenue of sponsorship, ticketing and membership and merchandise sales.

The financial result to 31 December 2021 reflects a strong underlying commercial business and cash position for the Group. Brisbane Broncos home games in season 2021 were less impacted by Covid-19 than the 2020 season. As a result, the Group's consumer and commercial revenue increased in line with the ability to deliver 2021 season benefits to members, fans, corporate partners and sponsors. Incremental NRL funding above the base NRL Club grant was received throughout 2021. Game day and stadium operating costs increased with the return of crowds for the 2021 season. Community program costs increased due to the expansion of the Beyond the Broncos Girls Academy and Careers Club programs, and football termination and restructure costs were processed during the financial year impacting total expenditure.

Revenue

The Group recorded gross revenue for the 2021 financial year of $50,967,240 which is a 46.0% increase on 2020. Operating revenue increased 46.3% whilst non-operating other revenue decreased 29.3%.

Sponsorship revenue increased 23.7% compared to 2020, reflecting the Group's ability to deliver contractual game day benefits in the 2021 season. The support from our corporate partner family over the 2021 season was exceptional.

As previously reported, 2020 ticketed memberships sold were reallocated to the 2021 season and accordingly minimal season membership revenue was recognised in 2020. As a result, total membership, ticketing, corporate sales, and game day revenue increased to $12,873,931 (2020: $2,379,453) in 2021. In the 2021 season, ticketed members received their benefits with the NRL Telstra Premiership returning to regular Broncos home game scheduling. The 2021 home game attendance increased 148.7%, with crowds averaging 21,444 (2020: 8,624). Total 2021 membership numbers increased to 28,533 (2020: 28,087) with ticketed membership numbers increasing to 22,253 (2020: 21,077) and non-ticketed membership numbers decreasing to 6,280 (2020: 7,010).

Merchandise sales revenue increased 27.8% on the comparative period, with game day merchandise sales transacted at 2021 home games. NRL merchandise royalty revenue increased to $552,899 from $102,738 in 2020, with the NRL remitting royalty revenue from applicable licensees on 2021 season sales.

The 2021 NRL Club grant decreased 1.6% compared to 2020. Additional NRL Club grant funding above the base grant was received throughout 2021. This included $0.15m health insurance support, $0.25m Covid-19 support and $0.5m in 2021 NRL financial outperformance funding. In addition, there was an increase in government funding (cost recovery revenue) for community programs recognised in 2021, due to the expanded Beyond the Broncos Girls Academy and Careers Club community programs.

Expenditure

Total Group expenditure for 2021 was $46,709,940, an increase of 32.0% compared to 2020. The increase in total expenditure is reflective of the return of crowds in the 2021 season and the resultant increase in costs associated with commercial, consumer and game day activities. The comparative period reflects the reduction in costs experienced in 2020 due to Covid-19 restrictions and cost reduction initiatives. Operating costs increased 33.4% and depreciation expense decreased 2.5%. Total expenditure reflects increased stadium operating expenses and corporate sales and ticketing expenses for the 2021 season. Marketing and advertising expenditure increased in line with increased sponsorship activation and the Group's ability to deliver contractual benefits in the 2021 season. Total football expenditure increased for player and coaching related restructure costs and development and community program costs increased for the expanded Beyond the Broncos Girls Academy and Careers Club community programs.

BRISBANE BRONCOS LIMITED

(ABN 41 009 570 030)

APPENDIX 4E

PRELIMINARY FINAL REPORT

FOR YEAR ENDED 31 DECEMBER 2021

RESULTS FOR ANNOUNCEMENT TO THE MARKET

Revenues from ordinary activities ($000)

Up

46.0%

to

50,967

Profit / (loss) from ordinary activities before tax attributable to

Up

1,007.4%

to

4,257

members ($000)

Profit / (loss) from ordinary activities after tax attributable to

Up

870.1%

to

2,897

members ($000)

Basic earnings / (loss) per share (cents)

Up

870.1%

to

3.0

Diluted earnings / (loss) per share (cents)

Up

870.1%

to

3.0

Net tangible asset backing per ordinary share (cents)

Up

10.8%

to

25.1

DIVIDENDS

Amount per security

Franked amount

per security

Final Dividend for 31 December 2021

1 cent

100%

Total amount per share relating to the year ended 31 December

1 cent

100%

2021

Previous corresponding period:

0.5 cents

100%

Final Dividend for 31 December 2020

AUDIT INFORMATION

The financial statements have been audited and a copy of the independent audit report is attached to the financial statements.

Louise Lanigan

Company Secretary

28 February 2022

Brisbane Broncos Limited and its controlled entities

CORPORATE INFORMATION ....................................................................................................................................

1

THE CHAIR'S REPORT.................................................................................................................................................

2

THE CEO'S REPORT .....................................................................................................................................................

3

PARTNER OVERVIEW .................................................................................................................................................

4

DIRECTORS' REPORT..................................................................................................................................................

7

AUDITOR'S INDEPENDENCE DECLARATION ....................................................................................................

21

STATEMENT OF FINANCIAL POSITION...............................................................................................................

22

STATEMENT OF COMPREHENSIVE INCOME ….. ............................................................................................. 23

STATEMENT OF CASH FLOWS ...............................................................................................................................

24

STATEMENT OF CHANGES IN EQUITY ................................................................................................................

25

NOTES TO THE FINANCIAL STATEMENTS .........................................................................................................

26

DIRECTORS' DECLARATION ..................................................................................................................................

49

INDEPENDENT AUDITOR'S REPORT.....................................................................................................................

50

ASX ADDITIONAL INFORMATION.........................................................................................................................

55

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Brisbane Broncos Limited published this content on 28 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 February 2022 05:01:09 UTC.