A huge increase in costs has resulted in Tennis Australia recording a similar net profit to last year, despite record revenue from a big rise in broadcast rights and several new sponsorship deals. 
Total costs increased by about $48 million compared with a $47 million rise in income. A large $30 million rise in operations and event expenses, as well an $8 million increase in tennis expenses and other small rises for media, commercial and other costs wiped out a record rise in revenue for the tennis governing body.
Though Tennis Australia made a record surplus of $11.97 million in the year to   June 30, according to organisation's 2015 annual report, the result only just surpassed the 2014 surplus of $11.2 million, even though revenue rose by about 22 per cent or $47 million.
But the organisation's net profit would have actually fallen to below its 2014 result were it not for a $1.4 million increase in finance income, which included a rise in interest income on investments held by Tennis Australia and a net foreign exchange gain.
Tennis Australia chief executive Craig Tiley played down concerns about the increase, telling The Australian Financial Review the revenue increase had allowed the organisation to make several key strategic investments.
"We took on host broadcasting rights for the first time this year, which is key for us as it allows us to tailor broadcasts for individual markets around the world," Tiley said. "We've also expanded internationally, opening offices in Hong Kong, Shenzhen, Shanghai and soon Tokyo. We need to think globally and to do that, you need people on the ground."
"We also have invested in our member [state] organisations, have the court rebate program (where Tennis Australia helps fund the building of new courts and tennis facilities), a big technology investment in our Tennis Connect [online software] program and have invested in programs like the Fast 4 [shorter game format]."

Development a priority
Tiley said Tennis Australia said surpluses should not come at the expense of the game's development.
"Ideally we would have at least $10 million in surpluses each year. We don't want to wait until that rainy day comes and be too late, and have big surpluses at the expense of not investing in the future of the sport." 
Total income was $254.6 million, compared with $206.1 million in 2014. The organisation noted it was in the first year of several new broadcasting deals with television channels around the world, including the Australian, Chinese, Japanese and Middle East markets. 
This year's 2015 Australian Open, by far Tennis Australia's biggest source of revenue, was the first under a new domestic broadcasting contract with Seven West Media worth about $35 million annually, up from about $20 million per year under the previous deal. The deal also saw Tennis Australia take on the production of the telecast of all Australian Open matches.
About 31 per cent or about $79 million of total revenue came from broadcast rights and another 29 per cent or almost $74 million from ticket sales. Sponsorship accounted for 26 per cent or about $66 million of the revenue, which included the signing of new deals with Emirates, Woolworths, McDonald's and Disney.