CAPE TOWN (Reuters) - South African Rugby announced a modest post-tax profit of 8.5-million rand ($498,826.29) for 2019 on Wednesday, but chief executive Jurie Roux insists it is well positioned to tackle the challenges brought about by the COVID-19 pandemic.
Roux confirmed revenues had increased by 2.5% to 1.29-billion rand at the body's Annual General Meeting, but that was offset, in part, by a reduction in test guaranteed income due to fewer Springbok matches.
He also confirmed that Bok players and management staff had been paid 62-million in performance bonuses for winning the Rugby World Cup in Japan.
"The measures that we have implemented in recent years allowed us to deliver a very satisfactory result at the end of 2019," Roux said.
"We improved our overall solvency and financial position through fully impairing all loans, investments or receivables where the recovery of such was in doubt."
He reiterated that the cuts to spending recently introduced by SA Rugby to the tune of 1.2-billion rand for 2020 were necessary to offset the effects of COVID-19 on operations.
"The pandemic has had the effect of tearing up all our approved budgetary plans but we have taken an aggressive approach to the potential impact of the virus," he said.
"It will be painful to endure for all rugby businesses, but it will mean that we will walk from the burning building still intact."
(Reporting By Nick Said; Editing by Christian Radnedge)