Finnish National Opera receives major private donation

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The Finnish National Opera has been given a major donation of EUR 550,000, from a person who wishes to remain anonymous.
      This is the largest donation the Opera has received, at least in its recent history. While admitting that the Opera has been given such a sum, General Director Erkki Korhonen reported that the National Opera is not allowed to provide even the sex or nationality of the donor, let alone his or her name.
      Typically, neither opera nor any other form of art gets appreciable amounts of private donations in Finland, as the taxation rules in the country do not encourage such actions.
     
According to Korhonen, the contribution is a significant economic aid to the FNO, given the establishment' current poor financial standing. The gift is almost one-third of the losses incurred last year.
      Furthermore, when it comes to a financial support to culture in Finland, a donation of half a million euros is an appreciable amount of money.
      The donor has not set any restrictions on the use of the gift. "We will use the money for various purposes", said Korhonen.
     
The current year looks better than the loss-making 2005, says Korhonen. However, he does not dare to forecast a positive result as yet.
      During the spring season, the Opera recorded a loss of EUR 350,000, while in August the house enjoyed a profit of EUR 100,000. In September the profit was still EUR 90,000, but in October the budgeted expenses were in excess of the revenues once again.
      "However, November and December both look good", notes Korhonen.
     
A mere flat line result is not sufficient. In order to get back its working capital, which dwindled away last year, the Opera should make proper profits over the next few years.
      Without a capital reserve the Opera cannot take any artistic risks and has to base its repertoire on those operas that are thought to be sure-fire hits.
      In Korhonen's view, the improved results for the current autumn are attributable to many reasons. The essential one is more bottoms on seats: the fact that the performances have sold better than last year.
      The performances of Giacomo Puccini's Tosca starring Karita Mattila, as well as her two Lieder concerts, brought the highest profits, reported Korhonen.
     
In order to improve its financial standing, the Finnish National Opera made a decision on a strategic recovery plan in April.
      According to the FNO's restructuring programme, the number of staff is to be reduced from 600 to 560 employees over the next three years. Moreover, the entire staff will be laid off for two months in 2007.
      The state assistance to the Opera is some 80 per cent of its expenses. The amount of the support has been increased by close to six million euros since 2001, and the government has announced that no additional financial support will be forthcoming.
      While trying to overcome its financial problems, the Opera is looking for new business sponsors. Last year, only half a million of its expenses, totalling around EUR 54 million, were covered by sponsors.
     
Moreover, the Opera has made an agreement with entrepreneur Kristian Järnefelt on a cooperation programme. Järnefelt is expected to seek out at least ten new sponsors for the Opera in the course of the next few years.
      The current main sponsors of the National Opera include the Finnish insurance companies Sampo, Varma, and If, as well as the major catering service company Fazer Amica, and Senaatti-kiinteistöt (Senate Properties), a government-owned enterprise responsible for managing and letting the property assets of the Finnish state. According to Korhonen, all of them will continue as sponsors also next year.


Previously in HS International Edition:
  National Opera to reduce staff by 40; two-month layoff for all in summer 2007 (27.4.2006)
  Troubled Finnish National Opera considering staff layoffs (29.3.2006)

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