May 30, 2003
By Thomas Thale
After successfully reinventing itself as a receiving house and as a lucrative business undertaking, the Johannesburg Civic Theatre is now set to position itself as a premier entertainment destination in the city.
The City has boosted the theatre's coffers by R2-million, which is to be used to pay for capital expenditure. The money is to be spent on lighting equipment.
The Civic Theatre recorded a profit of R5-million in the last financial year. From the next financial year, the theatre will not be motivating for any more subsidies as it expects to generate enough profit to fund its capital investment.
The theatre spent R2-million upgrading its sound equipment in the 2002/2003 financial year. The theatre aims to reduce its fixed costs by R1,5-million over the next financial year. For now, it still relies on council subsidies for 99% of its income, but plans to reduce its dependence on subsidies and be more self-sufficient in the coming years.
The theatre generates more revenue by renting out space to outside productions, providing technical and logistical services. The theatre anticipates a rise in demand for rental space in the coming years. This optimistic projection is informed by the fact that the theatre is fully booked for 2003 and 80% booked for 2004.
The theatre will further increase demand by embarking on an aggressive marketing drive, targeting especially previously disadvantaged individuals. The recently opened News Cafe will be another source of revenue for the theatre, which stands to receive 50% of the profits. The Civic Theatre contributed start-up funds amounting to R1-million for the café.
The theatre's recipe for success is to stage the "best of world-class live entertainment sourced both locally and overseas".
