Cutbacks and a slight turnaround in the global economy have pushed Vancouver’s Olympics into the black.
But organizers cautioned during a conference call yesterday that the positive position isn’t necessarily indicative of the future.
VANOC finished the 2009 financial year with a surplus of about $225 million, compared with a deficit of $48 million the year before.
The surplus is largely because it hasn’t yet paid suppliers for service.
“Soon our cashflow out will increase dramatically as we pay our suppliers,” said John McLaughlin, VANOC’s chief financial officer.
VANOC finished the year with operating revenues of $629 million, mainly from ticket sales and contributions from the International Olympic Committee. VANOC had operating expenses of $404 million.
“It’s what lies ahead, not behind us, that is most important,” McLaughlin said.
Among the questions that remain is how much VANOC will have to compensate Cypress Mountain and Intrawest, the owner of Whistler-Blackcomb.
VANOC has to cover the difference in revenues compared to a normal ski season.
After last year’s deficit, VANOC looked to cut costs where they could without significantly impacting the Games. A secondment program saved VANOC about $9 million by borrowing employees from its public and private partners.
