It was a successful 2023 for World Aquatics as the global governing body recently released its financial report for the last fiscal year.
World Aquatics reports a $10.69 million (USD) operating surplus for the year, and combined with investment income, a net surplus of 22.40 million. That comes after it had a $4.1 million operating deficit and a net deficit of $16.4 million in 2022.
OPERATING NUMBERS
All figures in USD
The operating surplus for World Aquatics comes due to lower expenditure in a few key areas, while their income was very close to what they budgeted for.
Their top sources of revenue were TV rights and sponsorship ($35.2 million) and hosting and commercial revenue ($27.6 million), while event & commercial expenses were their primary expense at nearly $31.6 million.
The operating surplus came after they spent nearly $3 million less on development and more than $500,000 less on legal costs, litigation & provisions than they had budgeted for.
Operating Revenue
- Olympic Movement – $993,902
- Hosting & commercial revenue – $27.65 million
- TV rights and sponsorship income – $35.25 million
- Penalty fees and other fees – $512,794
- Total Revenue – $64.41 million
Operating Expenditures
- Event & commercial expenses – $31.60 million
- Development activities – $7.06 million
- Anti-doping activities – $3.78 million
- Communications & marketing – $672,998
- Digital asset management – $615,836
- Legal costs, litigation & provisions – $344,684
- Gross Profit – $20.35 million
Total Operational Costs
- Administration Expenses – $9.65 million
- Operating Result – $10.69 million
The gross profit of $20.35 million was significantly more than the $14 million projection, while the final operating result of $10.69 million more than doubled the projection of $4.738 million.
Financial Activities (Investments)
- $11.70 million
Net result – $22.40 million surplus
World Aquatics also expected to make $7.2 million in investments but ended up surpassing that by more than 4 million to help reach the $22.4 million surplus.
NOTES
- The $62.90 million earned by World Aquatics through hosting & commercial revenue (combined with TV rights/sponsorship revenue) was 25.6 million more than it earned in 2022 ($37.26 million). A major part of that was the success of the 2023 World Championships, which generated $59.49 million in revenue and had a net surplus of $37.5 million ($21.98 million in expenses).
- The 2023 Worlds in Fukoka generated $26.50 million in partnership rights and host fees, and $28.98 million in TV rights and sponsorship income. World Aquatics also received just over $4 million in value-in-kind revenue.
- In earning $25.6 million more from events than last year, World Aquatics only spent $5.6 million more on event & commercial expenses. Expenses were also only slightly higher than last year in development, anti-doping, communication & marketing, and digital asset management, while they spent nearly $2 million more on administration.
- For administration, World Aquatics spent significantly more on payroll ($8.27 million compared to $6.90 million in 2022), which resulted in them spending a total of $9.64 million on administration compared to $7.91 million in 2022.
- Another major difference from last year was spending just $344,684 on legal costs in 2023 after spending $1.62 million in 2022. That came due to the legal battle with the International Swimming League (ISL), which could resurface and cost World Aquatics more in 2024 or 2025.
- A big factor in World Aquatics’ net deficit of $16.4 million in 2022 was the loss of $12.3 million in investments, which is a stark contrast to the $11.7 million made in 2023.
BALANCE SHEET
World Aquatics’ cash on hand and total assets is slightly less than last year despite the improved operating costs.
- Total Current Assets – $29.53 million ($17.54 million in cash and cash equivalents)
- Total non-Current Assets – $157.68 million ($139.82 in financial assets at fair value)
- Restricted Assets – $4.3 million
- Total Assets – $191.51 million
Last year, World Aquatics had $202.02 million in total assets, with the biggest difference being $24.17 million in cash compared to the $17.5 in 2023.
FUTURE PROJECTIONS
World Aquatics projects to earn $39.12 million in revenue from the ‘Olympic movement’ in 2024, which would be a near $5 million increase compared to 2021 ($34.62 million). They also project $32.61 million in hosting & commercial revenue, more than the $27.65 million this past year.
In total, World Aquatics projects to earn $102.69 million in income in 2024, more than $38 million more than 2023. Expenses are projected to increase by $15 million ($35.57 million compared to $20.35 in 2023). The operating surplus is projected at $23.16 million, which would bring the total surplus for the 2021-24 Olympic quad up to $42.75 million.
In the previous quad (2017-20), World Aquatics had a $10.21 million deficit, which was the result of there being no Olympic Games and the cancelation of other events due to the pandemic.
Income Statement – In USD Thousands
| 2021 | 2022 | 2023 | 2024 projected | Actual 2017-20 | |
| Total Income | $57,441 | $42,946 | $64,410 | $102,687 | $191,569 |
| Total Expenditure | $35,379 | $39,085 | $44,064 | $67,119 | $168,154 |
| Gross Profit | $22,062 | $3,861 | $20,346 | $35,568 | $23,415 |
| Operating Result | $12,956 | -$4,059 | $10,699 | $23,160 | -$10,214 |
World Aquatics’ optimistic outlook for the 2024 fiscal year comes as the 2024 World Championships ran in February and the Paris Olympics followed this past summer. The 2024 Short Course World Championships are still to come in December.
World Aquatics’ Treasurer Dale Neuburger says he expects World Aquatics to have “enhanced marketing and broadcast arrangements, new championship event partners and advanced analytical methodology to provide greater efficiency in the delivery of program events” as it looks towards the 2028 Olympics in Los Angeles and the 2032 Games in Brisbane.
