UCD profits rise to 34.9 million euros, driven by strong tuition growth

University College Dublin (UCD) recorded a pre-tax surplus of 34.9 million euros last year.

New accounts for the country’s largest university show it saw profits jump after revenue rose 10 percent, or €58.86 million, from €579.53 million to €638.39 million in the 12 months to the end of September.

The pre-tax surplus of EUR 34.9 million was followed by a pre-tax surplus of EUR 7.93 million in 2020 – an increase of 340 percent.

The university achieved the increase in profit and sales even though there was no classroom teaching for most of the year due to the Covid 19 pandemic.

UCD’s expenses for the year increased from €572m to €603.9m.

In his President’s Report, Prof. Andrew Deeks said that the improved financial performance for the year was primarily due to growth in tuition income from €20.6 million to €260.6 million.

UCD’s finances also benefited from government grants, which rose €3.9 million to €86.1 million, while research grants and contracts rose 15 percent from €86.3 million to €99.43 million.

The number of international students last year totaled 7,239, which corresponds to 24 percent of all students.

This compares to 8,574 international students in 2020, which accounted for 29 percent of all students that year.

Prof Deeks said: “Expenditure is expected to increase in the coming years as operations on campus return to pre-Covid-19 levels.”

On the impact of Covid-19, he reported that the pandemic had a significant impact on the university’s ability to generate revenue from its student housing and commercial operations on campus due to the closure of facilities for part of the year.

The accounts show that campus residency revenue fell 30.5 per cent last year from €20.09 million to €13.9 million, while catering and conference revenue fell from €2.9 million fell to €1.1 million.

Prof Deeks said the return to face-to-face classes last September and the lifting of all Covid-19 restrictions at the end of February had helped commercial operations on campus recover.

He said the university maintains that its healthy treasury balances, continued cost controls and return to a pre-Covid-19 operating environment means it can maintain its operations for the foreseeable future.

Prof. Deeks’ annual salary was €211,742. He stepped down from the role of president in recent days to take up a role at Murdoch University in Perth in his native Australia.

UCD’s biggest expense last year was personnel costs, which increased from €337.9 million to €356.39 million.

The number of employees was reduced by 193 from 5,278 to 5,085 last year. Payroll for key employees amounted to €2.17 million.

In total, 16 employees earned between 200,000 and 300,000 euros, 112 between 150,000 and 200,000 euros and 415 between 100,000 and 150,000 euros.

The university’s treasury increased last year from 107 million euros to 130 million euros, the reserves amount to 538.87 million euros.

Expenditure on travel during the year was €1.62 million, of which €68,000 was on hospitality.

A note attached to the accounts says a 924-bed campus accommodation was delayed by Covid-19 but has now been delivered.