The Los Angeles Convention Center, once a financial drain on the city, reported a record $8.1 million in profit for the latest fiscal year thanks to a surge in conventions and trade shows.
Profit for the fiscal year that ended June 30 is nearly triple the $2.8 million in profit reported in the previous fiscal year, according to AEG Facilities, the private subsidiary of Anschutz Co., which took over operation of the facility in 2013.
The glowing financial report is in stark contrast to the years before AEG took over managing the center. Operating the facility cost the city of Los Angeles more than $48,000 in 2013 and $1.8 million in 2012, according to city records.
The increased profit came primarily from a boost in revenue from parking, movie and television filming, and food and beverage sales at the facility, said Brad Gessner, general manager of the convention center and senior vice president at AEG Facilities.
It helped that the convention center had a 30% increase in citywide conventions, he said. The National Assn. of Letter Carriers, a group that has about 8,000 delegates visiting Los Angeles this week, will help boost the current fiscal year.
The conventions “are the ones that put the heads in the beds and generate economic growth in the city,” Gessner said, adding that the last time the letter carriers met in Los Angeles was 1941.
Much of the profit goes to the city or to a reserve fund for the convention center, he said. AEG collected a $175,000 annual management fee and is likely to receive a $175,000 bonus for reaching revenue benchmarks.
AEG Facilities also manages convention centers in Bakersfield, Honolulu, Puerto Rico, Australia, Oman and Malaysia, in addition to concert venues from Los Angeles to Sweden and China.
