Why is EBITDARD used in Astute BI benchmarking?

The Astute BI system has been developed to enable effective comparison of ‘core licensed venue’ activities.  These activities are focused on the operation of food, beverage and gaming activities and their associated operational overheads.

In order to compare different types of venue operations, such as leagues, RSL, bowling and golf, the income and expenditure associated with ‘non-core licensed’ activities, such as football, bowling greens and golf courses, have been omitted.  Other ‘business diversification’ pursuits, such as gyms, accommodation, and rental properties are also omitted.

If we consider that a Venue Certificate of Registration is a license given to champion a community cause such as recreational facilities (e.g. bowling, football, golf, returned services support etc.), then the ‘core licensed venue’ activities are the financial engine that allows for those other activities to take place.  Astute BI, through the benchmarking reports, provides a direct comparison of these operational activities.

In order to provide a more accurate measure, venue operational efficiency is best standardised using a slight variation on the traditional company measurement, EBITDA (Earnings Before Interest Taxation Depreciation and Amortisation), by adding rent and donations.  Rent encompasses the emerging trend of ‘off balance sheet’ rental of IT and gaming equipment while donations is self-explanatory. 

EBITDARD has been created as the venue specific standard measure.

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