The Royal Opera House (ROH) has reported a sharp drop in its annual income of 29%.
The charity’s latest accounts for the year ending August 2021 showed that its total income fell by £34m to £84m, mostly as a result of challenges posed by the Covid-19 pandemic.
ROH’s box office receipts reduced to £2.8m in 2020-21, accounting for just 3% of its total revenue, down from £27.6m in the previous financial year (23% of 2019-20 income).
Simon Robey, chair of the ROH, recognised in an introduction to the report that the charity emerged from the pandemic in a “less robust financial position than we would like”.
The accounts, which were filed last week, also revealed that the charity had to reduce its staff by more than 25% as part of its recovery plan, from 1,098 to 822.
It spent £1.3m on termination and redundancy payments, while overall wages and salaries fell from £5.6m to £4.3m.
To ensure the “long-term viability” of the charity and better respond to future challenges, Robey said the team has begun a “far-reaching restructuring of the organisation”.
ROH: ‘Huge regret and sadness’
A spokesperson for the ROH said: “It was with huge regret and great sadness that the ROH undertook an organisation-wide restructure in 2020 as a result of the significant financial impact of the pandemic and almost a year of closure.
“This was part of our four-pronged plan for recovery, alongside a fundraising campaign; support from government; and realising such value as we could from our assets – in particular the sale of the David Hockney painting.
“Considerable challenges still lie ahead, including rebuilding audience confidence and coping with increasing inflation on ever tighter budgets.
“We are nonetheless determined to reach people of all ages and backgrounds from across the UK with the very best of dance, theatre and music making, and to inspire the next generation of audiences and performers.”
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