NZRU suffer loss

The New Zealand Rugby Union (NZRU) have announced a loss of $4.8 million (GBP1,7 million) for 2006.

The result follows a $23.7 million (GBP8,5 million) profit in 2005.

NZRU chief executive Chris Moller said the loss was disappointing because until last October the union thought it was on track to achieve a break even result.

He said the “significant and rapid increase” in the New Zealand dollar against the US dollar and the British pound during the last few months of 2006 had eroded this position.

“This result highlights the fact that, with two-thirds of our revenue generated in foreign currency, we are vulnerable to exchange rate movements and, like many other New Zealand organisations, our results are very sensitive to the high value of the New Zealand dollar being experienced at the present time,” Moller said.

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