Keystone Centre returns to surplus in 2024-25

The Keystone Centre, Brandon’s cornerstone of the event industry, reported an operating surplus of $126,538 in the 2024-25 fiscal year.

The result marked a financial turnaround from an operating deficit of $726,889 the previous year.

The centre’s operating revenues fell to approximately $5.336 million from about $7.018 million in 2023-24, largely due to lower rental revenue, which declined to $4.266 million from $5.761 million.

However, operating expenses were reduced to $5.562 million from $6.891 million the year before, helping offset the revenue drop.

The improved result reflects a deliberate focus on financial management by both the board and senior administration, chair Bruce Luebke told the Sun on Monday.

“There was a significant focus in the 2024-25 fiscal year on improving our operational finances,” Luebke said. “The results show that paying close attention to finances on a concentrated basis can really pay dividends. It also shows we are working hard to ensure there is good value for the money being invested in the facility by our funding partners, the Province of Manitoba and the City of Brandon.”

Luebke said several factors contributed to the improved performance, including new revenue streams and cost containment measures. Loge box rentals in the main arena came online during the year, while advertising, naming rights and successful event hosting also strengthened revenues.

On the expense side, he said, the centre limited year-over-year cost growth to about six per cent, despite broader inflation pressures.

“We were able to bring down some expenses, particularly hydro costs, with the addition of LED lighting throughout the building,” he said. “There wasn’t one single thing that did it, but several smaller improvements that really added up.”

The annual report also shows continued investment in infrastructure, with capital assets increasing to about $16.787 million from about $14.903 million. The operating fund balance grew to $268,590 from $142,052, improving short-term financial flexibility, although total fund balances dipped slightly to about $19.688 million from about $19.898 million due to a capital fund deficit.

Looking ahead, Luebke said the centre is in a stable position partway through the 2025-26 fiscal year, which now includes additional funding announced by the province and city last spring.

“We don’t anticipate a large surplus, but we are in a surplus position and generally on budget,” he said. “Overall, operationally, the Keystone Centre is in a good place.”

Future priorities include advancing the centre’s 2025-30 strategic plan, expanding major events and rolling out new projects, including green space enhancements and initiatives tied to the recently launched Keystone Centre Foundation, he said.

The organization remains focused on balancing financial sustainability with its role as a regional economic driver, general manager Connie Lawrence said.

“Our focus remains on delivering exceptional experiences for our clients and the community while ensuring the long-term sustainability of the Keystone Centre,” Lawrence said.

“We are proud of the progress made over the past year and look forward to building on this momentum as a cornerstone for economic and cultural activity in Brandon and Western Manitoba.”

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