Citywide posts higher revenue but overall loss as major divestments reshape operations

The City of Melbourne–owned company Citywide Service Solutions has posted a mixed financial result for 2024–25, recording higher revenue from its core Victorian operations while undergoing major structural changes, including the sale of its Waste Management division.

Citywide’s audited annual report shows revenue from continuing operations increased by more than 13 per cent to $176.7 million, up from $156.1 million the previous year. However, the company still reported a net loss of $2.3 million from continuing operations after tax.

The financial year was shaped by two major divestments. The most significant was the conditional sale of Citywide’s waste management business to Cleanaway, announced in June 2024 and completed in July this year.

Citywide also moved to exit its utilities operations and its New South Wales, ACT and Queensland businesses to refocus on Victoria as its core market.

At the November 25 Council Meeting, the portfolio head for finance, Cr Owen Guest noted that Citywide’s financial position had shown improvement but remained a challenge.

“The trading results for Citywide can be seen as an after-tax loss of $2.3 million, which is down from the previous year,” he said. “Revenues have gone up by 13.1 per cent, which is less than the increase in expenses.”

While there are some positive signs, Cr Guest said that there was “more work to be done” and expressed concern about the company’s decision to issue a dividend while operating at a loss.

There was the release of a dividend of $17.5 million when there is in fact an operating loss at the company,” he said. “I’m not going to say we shouldn’t adopt these accounts, but I do think that’s something that should be reviewed going forward, and I wouldn’t like to see it happen again.

Operating expenses rose to $179.9 million – an 11.7 per cent increase on the previous year – outpacing revenue growth and contributing to the ongoing losses.

Citywide’s audited financials were previously approved at a special council meeting in September, and on November 25, councillors were asked only to note the finalised annual report.

The report also outlines changes to the board, including the appointment of new directors Paul Clark and Theodora Elia-Adams, replacing long-serving former chair John Brumby and others who retired in late 2024. •