The producer of hit West End shows including Hamilton, Mary Poppins and Les Misérables has reported a dip in profits as cost increases more than offset an increase in revenues.
Cameron Mackintosh’s eponymous company, which runs eight venues in the West End of London including the Noël Coward and Prince of Wales theatres, reported profits of £43.2m for the year to the end of March 2024, down on the £45.4m it made in the previous 12 months.
The company, which is controlled by the theatre tycoon, reported a healthy increase in revenues, which rose from £185.8m to £199m.
Mackintosh, 78, who started out as a stagehand in the West End, has amassed an estimated £1.25bn fortune spinning a hugely successful producing career into a musical theatre empire.
The business credited the performance of productions including Les Misérables, Mary Poppins, Hamilton, The Phantom of the Opera and Miss Saigon in the UK and overseas markets. The UK touring production of Hamilton, which opened in Manchester in November 2023, is booked through to January next year.
The huge popularity of star-studded shows such as Hamilton, which has prices as high as £300, has fuelled a surge in ticket prices. For the most in-demand West End shows, the average top ticket price rose by 50% between 2023 and 2024.
“All key titles owned by the company are proving to be more in demand than ever and many productions are planned for the next few years,” the company said in filings submitted to Companies House.
“Since the balance sheet date, the three principal activities of the group – the production and management of theatrical shows throughout the world, the operation, restoration and refurbishments of eight theatres in the West End of London and the worldwide exploitation of secondary theatrical rights have traded profitably.”
The company revenues decline in its UK and Europe operation, which accounts for more than half of total turnover, from £113.8m to £107.9m. Revenues fell in Australia to £2.9m, down from £1.69m.
However, declines in these markets were more than offset by an almost 30% increase in income from North America, from £67m to £86.9m, thanks to productions including Les Misérables, the world’s longest-running musical, which celebrates its 40th year in 2025. The company’s revenues in Asia also rose, from £1.89m to £2.2m.
Despite the overall increase in group revenues, profits were hit by rising costs.
after newsletter promotion
The company’s total cost of sales rose from £94.5m to £106m and the average number of staff across the year grew from 1,074 to 1,136. While total staff costs rose from £62m to £76m, the company said it was maintaining margins, which may have been helped by ticket price increases.
The company also said spending by theatregoers beyond the initial purchase of their tickets had increased. “Secondary spend per head increased while margins and costs have been controlled,” it said. “The future of all areas of the business is expected to be extremely strong.”
Mackintosh built his fortune by producing the original performances of Les Misérables, Miss Saigon, The Phantom of the Opera and Cats, and holding on to some, or all, of the rights of his global hits.
This enabled him to move into theatre ownership, with eight venues in London. He also owns a controlling stake in Music Theatre International, the largest owner of amateur Broadway theatre rights in the world.
Knighted in 1996 for services to British theatre, 2027 will mark Mackintosh’s 60th year in the industry. His first production, The Reluctant Debutante, opened at the Kenton theatre in Henley-on-Thames in June 1967.
Source: theguardian.com
