Keystone Centre reports reduced losses

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This article was published 10/01/2025 (249 days ago), so information in it may no longer be current.

A cornerstone of Brandon’s events industry — the Keystone Centre — reported a smaller net operating loss for the 2024 fiscal year, reflecting a gradual recovery from the continuing impacts of the COVID-19 pandemic.

Its operating loss shrunk by $401,000 to $726,890 for last year, but the facility sees a promising year ahead, bolstered by high-profile events, such as the Arabian Horse Show, which returns later this year after a long hiatus.

The centre’s financial report also highlighted a notable increase in its capital fund balance, which rose from $15.02 million in 2023 to $19.64 million in 2024, and reiterated its strong commitment to long-term asset investments and financial sustainability.

The organization’s efforts to address revenue challenges also bore fruit, with rental revenue increasing by about 22 per cent from 2023 to $4.47 million last year. The revenue growth also underscored the success of strategies aimed at optimizing venue utilization and attracting more events. Additionally, its food and beverage margins saw a dramatic rise, reaching $228,007 in 2024, jumping from $87,161 in the previous year.

The reduction in losses is attributed to a combination of increased event attendance and higher revenue generation, finance director Dan Robertson told the Sun.

The Keystone Centre’s continuing deficit is in keeping with the gradual recovery seen in the event, tourism, and hospitality sectors vis-a-vis the impacts of the COVID-19 pandemic.

The recovery is still underway, with industry experts suggesting it could take up to five years to return to pre-pandemic levels.

“We’re seeing a return to normalcy,” Robertson said during the interview. “Attendance at events like Brandon Wheat Kings hockey games, concerts and conventions has increased significantly. Revenue grew by over $1 million year-over-year, supported by stronger public engagement and spending at events.”

Effective cost management and unforeseen revenue from late fiscal-year events were credited for the improved performance, according to chair Bruce Luebke.

“We projected a deficit of over $1 million mid-year,” he said. “Strategic efforts in the third and fourth quarters, including expense controls and sponsorship gains, reduced the shortfall further.”

To sustain this momentum, Luebke said, the Keystone has implemented several revenue-enhancing measures, including a seven per cent fee increase across the board and a 15 per cent hike in ice rental fees, which were introduced during the 2024-2025 fiscal year.

Luebke also emphasized the importance of events like the Arabian Horse Show.

“Attracting high-impact events is key to improving our financial stability,” he said. Additionally, the Centre has ramped up sponsorship efforts, filling nearly all available advertising spaces within the facility. “The support from Brandon’s business community has been phenomenal,” Luebke added.

In-house operational upgrades, such as LED lighting replacements have “significantly” reduced utility costs, general manager Connie Lawrence pointed out.

The management team, she said, also prioritized capital investment projects, supported by a $4.62 million surplus in the capital fund.

“These projects include major upgrades to the HVAC system, sound equipment, and arena ice plants,” Lawrence told the Sun. “Renovations to the main arena’s washrooms, part of a grant from the Province of Manitoba, are scheduled for completion by the Wheat Kings’ season opener in September.”

While acknowledging the Keystone’s reliance on external support, Luebke underscored ongoing discussions with the Province of Manitoba and the City of Brandon for additional financial contributions. “These governments recognize the Keystone Centre’s economic importance to Brandon and western Manitoba,” he stated.

Despite the improvement in revenue streams and grant support, the organization’s operational deficit remains a concern, as the operating costs rose to $6.3 million, up from $5.59 million in 2023.

The Keystone Centre continues to face the challenge of balancing rising expenses with efforts to generate sustainable income. Cash reserves declined significantly, pegged at $432,277 as of July 31, 2024, down from $902,557 in the previous year.

Robertson explained that the increase was driven by several factors.

“This is a labour-intensive operation,” he added. “When the centre becomes busier, the labour component naturally increases. Utility costs also rose as the facility was being used at a higher level.”

Despite rising expenses, Robertson said the center is actively working to control costs.

He praised the maintenance and engineering teams for keeping the facility operational and clean with limited staff. “It’s a huge compliment to them that we can host events over and over again,” he said.

Lawrence also commented on expenses, citing external factors, such as carbon taxes, water rate increases from the city and rising hydro costs.

Luebke provided further context, sharing financial data from 2020 to illustrate the impact of rising costs — insurance rates increased by 91 per cent, hydro by 74 per cent, natural gas by 47 per cent, and water by 117 per cent. “These four expenses alone add up to about $1.2 million,” he noted.

He added the Keystone’s 2024-25 budget has a projected a deficit of over $600,000, but expressed optimism that short-term operational funding from the city and province could help offset the deficit, along with additional revenue generation opportunities.

“If we can at least break even and maybe make a little money, we’re providing a great service to our community,” he said. However, he acknowledged that achieving profitability was “years away” and would require addressing substantial capital needs for the 540,000-square-foot facility.

“We’re focused on maximizing the property’s utility to generate revenue sustainably,” he said. Rental fee increases are also slated for the next two fiscal years.

The Keystone Centre’s leadership remains cautiously optimistic about its financial future.

“While challenges persist, we are making tangible progress,” Robertson concluded. “Our focus is on maintaining this upward trend and ensuring the centre remains a vital hub for the community and the region.”

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