Both orchestras registered profits in 2014 but still made a loss in 2015 despite increased Government subsidy.

Both the Sydney Symphony Orchestra and the Melbourne Symphony Orchestra have reported significant financial losses in their respective 2015 annual reports. The MSO registered a deficit of $577,653, with the SSO reporting a shortfall of $896,811.

Both orchestras generated surpluses in 2014, with the MSO flush to the tune of $298,770 last year. Despite cutting its running costs in 2015 by $588,052 (on the previous year’s outgoings), MSO was still unable to cover its expenditure. 

The size of the MSO’s deficit is disappointing given that it reached record levels of attendance during last year’s season, with 87% of available tickets sold across its 99 core performances. In total, across core, regional, free and private hire performances, the orchestra played to a combined audience of 331,497 in 2015. Box office takings were up 2% on 2014’s income, representing 35% of the orchestra’s revenue in 2015, and Government subsidy from Federal, State and local sources was also up by 2%, representing 46% of 2015’s income. However, philanthropy and private donations were down on 2014’s by 4%, making up just 14% of the orchestras total income, compared with 18% on the previous year. In real money terms, the orchestra received $1,440,008 less in donations in 2015. 

Compared to the MSO, SSO registered a far more modest surplus of just $16,345 in 2014, but the scale of its current deficit, a loss of nearly $900,000, is the biggest year-on-year decrease in income recorded by the orchestra since 2009, when the orchestra registered a loss of $1,090,477. This is the fifth year in a row that the orchestra has reported a decreased operating profit on the previous year. The SSO remains the busiest State orchestra in the country, delivering 179 performances of more than 100 unique programmes across the year. However, its combined attendance reached its lowest levels of recent years, with just 82% of its total audience capacity filled, down from 86.5% in 2011.

While the orchestra did receive $486,817 more in Government, State and local grants than the previous year, the SSO’s box office takings were down on 2014’s by 2% ($326,018), while its overall running costs were $637,775 higher than the previous year. However, it’s the failure of some of the SSO’s more commercial and “popular” crossover programmes that seem to have caused the biggest dent to the orchestra’s coffers. Viewed as easy money spinners, commercial programmes featuring famous film and television scores, or collaborations with pop and rock acts, have become a familiar part of many orchestras’ offerings, but SSO Managing Director Rory Jeffes believes the volume of this mass-appeal programing has reached saturation point. “The sheer amount of product in the market meant we were unable to attract the level of support we had previously enjoyed,” he said. Despite the overall decline of the SSO’s ticket sales in 2015, attendance to its core classical programme was, in fact, greater than 2014 by 1%, revealing the scale of the attendance shortfall to the orchestra’s crossover concerts.

Some aspects of the SSO’s 2015 report are cause for celebration. The orchestra self-generated 63% of its total income in 2015, making it the only state symphony orchestra independently to earn a larger sum than its Government subsidy. SSO also saw a marked increase in donations and sponsorship, which has almost doubled in the past two years.