Scarlets have recorded a loss of more than £1.8m for the financial year ending June 2022, after posting a £2.4m deficit for the previous 12 months.
The Welsh region said it was “an incredibly challenging season” coping with the continued effects of the Covid-19 pandemic.
Turnover for the year was £13.3m, up from £5.7m in 2021-22 when fans were unable to attend games during lockdown.
The region continues to pay off a 20-year £5.5m Covid loan.
Scarlets chairman Simon Muderack said while the impact of the pandemic was felt most significantly in the 2020-21 season and financial year, “the effects continued to weigh heavily as we emerged from many of the government restrictions which had been in place.”
“Our primary focus this year was to rebuild following the significant impact felt by Covid and put the club in as strong financial footing as possible,” added Muderack in the report for the year ending 30 June 2022.
“Together with my regional colleagues and the Welsh Rugby Union a new six-year funding framework was agreed with the WRU and signed in March 23.
“Whilst this new agreement does not take away the financial challenges presented by Covid, it does give us certainty and visibility over funding and cash flow.
“I would like to thank our dedicated directors and benefactors who have agreed to provide a level of financial support and stability to the club as we implement the new agreed funding model.”
In November 2021, Scarlets had travelled to South Africa for a United Rugby Championship (URC) match against Sharks when a potentially new strain of Covid was identified in South Africa.
UK Government travel restrictions on inbound travel from South Africa forced the region to place all staff in complete isolation at an approved hotel facility in Belfast.
“Not only was this an incredibly challenging time for all our staff placed in isolation but also on their families back home,” said Muderack.
“This also had performance implications due to the extended period of isolation without any training facilities. As a result, the first round of our European campaign against Bristol Bears had to be cancelled.
“The second round of Europe also could not be played, this time due to the French authorities placing travel restrictions.
“Financially, with fans allowed back into stadiums for the 2021-22 season revenue streams have improved on the previous year.
“However, revenues have not recovered fully to pre-pandemic levels together with the WRU and URC recovering incomes they overdistributed the previous year.”
Muderack also confirmed all interest and capital repayments were made during the year and that all agreed HMRC repayments were made on time.