ITF

04 2024 ITF Annual Report and Financial Statements Report of the Chairman of the Finance Commi ee Opera ng Expenditure Opera ng expenditure for 2024 was $112.2m (2023: $119.3m). Davis Cup par cipa on payments and expenses totalled $50.6m (2023: $58.8m) which, along with record levels of Data Sales payments of $13.1m in 2024 (2023: $13.9m), contributed to a $8.0m decrease in major events costs to $73.6m (2023: $81.6m). Commercial costs decreased by $0.1m in 2024 to $2.9m (2023: $3.0m) due to a reduc on in produc on costs for the Davis Cup Finals. The ITF con nues to make data sales payments amoun ng to 37% of prize money for $15,000 tournaments, and 50% of prize money for all tournaments with a prize fund of $25,000 and above. The ITF is ac vely inves ng in the future success of the Tours and Player Pathway through strategic funding via Balanced Calendar Fund grants to support more countries to hold tournaments and upgrade exis ng tournaments to higher prize money levels – see the Strategic Projects sec on for details. In 2024, Tennis Development opera ng expenditure was $11.4m with lower overhead costs. The ITF con nues to demonstrate its unwavering commitment to delivering programmes that benefit na ons at all levels and across the globe. Presiden al and Communica ons department expenditure decreased from $5.4m in 2023 to $5.1m in 2024. The Annual General Mee ng was held in person in Hong Kong, China with subsidies given to Na onal Associa ons enabling 202 delegates from 131 na ons to a end. The Tennis An -Doping Programme is managed by the Interna onal Tennis Integrity Agency (ITIA), an independent company. An -doping expenditure of $1.1m (2023: $1.4m) is contained within Integrity, Science and Technical expenditure of $5.6m in 2024 (2023: $8.5m) represen ng the ITF's share of the costs of the programme. Other costs contribu ng to the total include legal fees of $2.3m in the year including those related to the dispute with Kosmos, subsequently se led in early 2025. Finance and Administra on opera ng costs, including costs of the IT department and IT projects, increased from $8.1m in 2023 to $10.0m in 2024 driven by an increase in the bad debt provision. Staff costs, included within each department, amounted to $15.1m in total (2023: $15.1m), with the number of employees increasing from 139 to 148. Staff-related costs, including salaries, benefits, and Senior Leadership Team remunera on, are overseen by the Remunera on Commi ee and approved by the Board. Strategic Projects Strategic projects are directly related to delivering the objec ves of the ITF2024+4 strategy and not considered as ongoing or normal ac vi es. The ITF World Tennis Number remains a key project which gives Na onal Associa ons the means to iden fy players and grow par cipa on levels, while also providing meaningful ra ngs to recrea onal and professional players alike. The World Tennis Number is a flexible tool for tournaments and leagues as the basis for acceptance, seedings and groupings. It provides players and coaches in 70 na ons with accurate data points to measure their tennis ability. Expenditure in 2024 was $1.2m (2023: $1.2m) for a project which reduces member na ons' costs associated with developing their own ra ng systems. Strategic Project expenditure also includes investment in the World Tennis Tour referred to as the Balanced Calendar Fund. This project represents a core strategy for the ITF Tours and Player Pathway providing funds to increase the number, loca ons and prize money of tournaments around the world to ensure fairer access for all players. In 2024 $2.5m funding was provided to na ons (2023: $2.6m). Inves ng Ac vi es The investment por olio invests for long-term growth and includes strategies for mi ga ng short-term vola lity. The ITF Por olio had a strong performance in the year with $2.0m of net income recorded in the Consolidated Income Statement, a simple posi ve return of 9.9% (2023: $3.7m, 19.4%). The por olio con nues to be overseen by Cambridge Associates under an advisory mandate and is supervised by the ITF's Investment Advisory Panel which reports to the ITF Finance Commi ee and the ITF Board of Directors on a regular basis.

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