Horror result: Opera Australia books $22m loss after COVID-ravaged year
By Nick Galvin
COVID-ravaged Opera Australia has posted a massive $22.5 million loss, prompting a root-and-branch review of the country’s largest performing arts organisation.
The loss was mostly offset by COVID handouts from federal and state governments worth more than $21 million. Widespread cancellations caused by lockdowns and border closures played havoc with the company’s bottom line.
“It’s not anywhere near where we would want to be,” said OA chief executive Fiona Allan, who took up the position at the end of last year. “I’m focusing on recovery. The biggest thing in front of us is how to turn it around and in an environment where we are still affected by COVID.”
CEO Fiona Allan says she is focused on the recovery of Opera Australia from the pandemic.Credit:Pamela Raith
OA has brought in management consultancy Dandolo Partners to chart a way out of the crisis, transform its operating model and produce a “new-look” company.
Lyndon Terracini will leave at the end of 2023.
“What we are doing at the moment is not sustainable in the long term,” said Allan, adding that the new direction, which would probably feature a sharpened focus on local talent and content and fewer imported stars, would be made public in the next three to four weeks.
In September 2020, at the height of the COVID outbreak, OA generated a storm of negative publicity after it sacked 56 staff, including more than a quarter of its musicians.
While she was reluctant to comment in detail on future plans, Allan insisted more redundancies were not on the horizon.
“Everyone’s had enough of that,” she said. “This is about our own agility. It’s not about job losses at all. It’s about being able to streamline what we do. We’re quite a cumbersome beast.”
The blueprint is being prepared against the backdrop of a search for a new artistic director, following the announcement Lyndon Terracini, appointed in 2009, will leave at the end of 2023.
Allegations of bullying and harassment around the company’s production of Phantom of the Opera are being investigated.Credit:James Brickwood
Allan said they were talking to “lots of people”, particularly Australian candidates.
“We’ve got some really, really interesting people coming forward but, of course, as with any job description, we’re looking for a ‘unicorn’,” she said.
Last year, Opera Australia staved off imminent collapse by selling its Alexandria warehouse for $46m, a decision Allan described as “regrettable”.
“I think it’s greatly, greatly regrettable that we had to sell one of our biggest assets,” she said. “I can’t apply hindsight to this because I wasn’t there. I just say what a regrettable thing to have to do but we did that to protect the company.”
OA is considering acquiring new warehouse premises at Morisset on the NSW Central Coast, with the possibility the site could include some performance facilities.
“Phase one is called, ‘Build a big shed and put containers in there’,” said Allan. “But there is another phase called, ‘What can we do that’s actually about supporting the local cultural ecology?’ It could be a rough-and-ready performance space with some pullout seating. How can it be a place that’s supporting local jobs and audiences and giving Opera Australia a presence somewhere else?”
Earlier this year, the company was rocked by allegations of bullying and harassment centred around its production of Phantom of the Opera on the harbour stage at Mrs Macquarie’s Chair.
An independent investigation is in train and confidential interviews are being conducted with staff. Allan said she expected the investigation to be finalised in three to four weeks.
A cultural guide to going out and loving your city. Sign up to our Culture Fix newsletter here.
correction
This article has been updated to reflect the fact Opera Australia’s operating loss of $22.6m last year was offset by $21.1m in COVID-related government support.