LA convention center reports second profitable year in a row
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The Los Angeles Convention Center reported the second consecutive profitable year since a private firm took over management of the facility in downtown Los Angeles.
AEG Facilities, a division of AEG, the entertainment group that owns and operates the adjacent Staples Center and L.A. Live, reported that the convention center generated $2.6 million in operating profits for the fiscal year that ended June 30.
In the five years before AEG took over at the end of 2013, the convention center ran on a deficit, costing the city more than $48,000 in 2013 and $1.8 million in 2012.
Last year, the convention center reported $3.3 million in profits, after cutting expenses and increasing commercial filming at the facility.
For the current fiscal year, AEG said it increased profits by boosting revenues from filming (43%), parking (4%) and rentals (11%) over the previous year.
AEG operates on an annual management fee of $175,000, plus bonuses for exceeding revenue projections and other benchmarks.
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