Annual Report 2011 Australian Grand Prix Corporation

3. Financial Informationa. Summary of Financial ResultsFormula One Grand PrixThe 2011 Formula 1 Qantas Australian Grand Prix was held on 24 – 27 March 2011.The Corporation was successful in delivering the Formula 1 event within budget expectations.The Corporation continued to provide innovative and flexible ticket options, which helped bothcorporate sales and grandstand sales increase revenue over 2010 levels.Expenditure increased from the 2010 Event as a result of a number of factors including: the increasein contractual commitments and an increase in the cost of grandstand and corporate facilities asa result of the increase in sales volume at the 2011 Event.The government contribution to the Formula 1 event was $50.050m in 2011 which was favourableto business plan expectations and should be considered in conjunction with the substantial benefitsto the State of Victoria both in terms of economic benefit and branding and advertising exposuregenerated by the international television coverage and media interest.Formula One Grand PrixFutureEvents$’0002011Event$’0002010Event$’0002009Event$’0002008Event$’0002007Event$’000Sales Revenue - 26,462 24,576 26,746 34,899 32,993Total Revenue - 33,402 31,095 35,317 43,257 43,441Total Expenditure - (83,452) (80,349) (75,547) (83,393) (78,068)Operating Surplus/(Deficit)before Government Investment,Depreciation & Unrealised- (50,050) (49,254) (40,230) (40,136) (34,627)Exchange Gain/(Loss)Government Investment 1,228 50,050 49,254 40,230 40,136 34,627Capital Works ActivitiesThe total capital allocation by the government for the 2010/11 financial year was $1,851k (2009/10$1,384k). The 2010/11 capital works expenditure relates to event requirements, such as constructionof the new V8 pitlane, safety requirements, office equipment and website development. Capitalworks in Albert Park are conducted under licence from Parks Victoria. Such items in the 2010/11financial year included park improvement and infrastructure works including the improvementand repair of drainage and sewer works in and around the pit buildings and the replacement ofguard rails.Australian Grand Prix Corporation Annual Report 2011 17