The Royal Shakespeare Company's income has grown by a quarter to £62.6m, thanks to a 75 per cent increase in box office income fuelled by the massive success of Matilda the Musical.
Despite cuts to its Arts Council England funding of £800,000 in 2012/13, the charity’s income rose to £62.6m this year compared to £50.1m last year.
The growth was fuelled largely by a substantial increase in self-generating income. Its box office receipts, which account for over half of the charity’s total income, increased by around 75 per cent from £18.1m to £31.6m.
And fundraised income grew by 28 per cent to £4.1m, as did trading income by 9 per cent to £4.8m.
A Royal Shakespeare Company spokeswoman said that major gifts and additional development activity in the USA contributed to the growth in revenue fundraising income.
She added that the significant increase in self-generated income is largely due to the “extraordinary success” of Matilda the Musical in London.
“We aim to use future income from Matilda the Musical to support growth in new business areas and ‘invest to save’ initiatives in order to increase the resilience and sustainability of our financial base.”
However, despite Maltilda the Musical fuelling large income growth at the Royal Shakespeare Company, putting on the production helped increased expenditure at the charity for the year 2012/13 by 32 per cent to £62.6m from £47.4m.
The figures, which are included in Royal Shakespeare Company's annual report, exclude any income and expenditure relating to the Transformation Project, its capital redevelopment programme.
RSC executive director, Catherine Mallyon, said: "The fantastic figures mask some real challenges. There is significant pressure on us and on arts organisations up and down the country. We know this because we are out there, performing and working, in every region. Cuts in public investment are biting. Local authorities are having to take unwelcome decisions. Trusts and foundations face pressures on their own endowment returns. And corporate sponsorship for the arts is falling, especially outside London.
"We are responding to the challenges with vigour, to bring the best possible theatre to the widest possible audience. We are working hard to maintain a healthy mixed economy, where public investment leverages income from commercial revenue, sponsorship and philanthropy and, of course, from people who choose to buy our tickets. And we are collaborating with and supporting other organisations where we can, making the case for the arts to be woven into every strategic development plan and inward investment strategy.
"Encouraging philanthropy and private investment is an important opportunity for UK arts and is essential in order for the RSC to make great theatre. Mark Pigott's generous and significant gift is a commitment to our future, and I hope it will inspire others to join him in contributing to artistic excellence."
RSC America Board member, Mark Pigott KBE has made a six-figure major gift to the Royal Shakespeare Company. A spokesman would not disclose the exact amount of the gift, which will support a forthcoming production and the RSC endownment fund.
