2020-02-11 Services and Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                                  11 FEBRUARY 2020


For the half year period ended 31 December 2019, The Digital Hub’s operating result is $25k
favourable to budget. YTD revenue is $25k above budget, this positive variance primarily driven
by an increase in sponsorship revenue. Expenditure overall is in line with budget.

Revenue Analysis

Figure 2: Monthly Revenue by Type

  160,000

  140,000

  120,000

  100,000

   80,000

   60,000

   40,000

   20,000

        -
             Jul                 Aug                    Sept                 Oct                 Nov                Dec

            Lease Revenue                         Outgoings Reimbursement            Co-work Space Memberships
            Venue Hire                            Grants, Subsidies & Sponsorships



Table 2: Monthly Revenue by Type
Revenue Type                                Jul         Aug        Sept        Oct         Nov      Dec   Total YTD December
  Lease Revenue                         5,053         5,053      5,053      5,053       4,300     5,053               29,564
  Outgoings Reimbursement               1,098         1,098      1,098      1,098         850     1,098                6,340
  Co-work Space Memberships             9,693        11,768      9,790      8,365      10,390     8,430               58,435
  Venue Hire                              -             -           -         -           -       2,845                2,845
  Grants, Subsidies & Sponsorships        -             -           -         -        50,000       -                 50,000
Total                                  15,843        17,918     15,941     14,516      65,540    17,426              147,184


Commentary:
 Lease revenue is consistent across the year, representing approximately 20% of budgeted
   revenue. One of The Digital Hub’s office tenants, indicated at the end of October that they
   would need to terminate their lease as a result of the Sunshine Coast office closing. The
   process of replacement is nearing completion, however this temporary vacancy may result
   in a lease revenue short-fall of between $5k and $10k for the full financial year.
 Co-work membership revenues have grown strongly with average monthly revenues
   increasing by 62% year on year. Current demand is strong and the co-work areas are close
   to capacity.
 Technology One provided a sponsorship contribution of $50k (against an anticipated
   budget of $25k) towards support of The Digital Hub’s ecosystem development initiatives,
   which have centred on supporting digital industry subgroups to organise and grow.




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