Mona remains heavily dependent on money from owner David Walsh’s gambling interests despite recent cost-cutting and a jump in visitor numbers, newly filed accounts from the loss-making Tasmanian gallery’s parent companies show.
Last week, Mr Walsh’s privately owned Downward Spiral Enterprises (Tas) lodged eight years of accounts with the corporate regulator, giving a first glimpse of the finances of Mona’s ultimate holding company.
The accounts for the years from 2019 to 2025 reveal that more than $695 million in dividend income sustained the Mona gallery and other businesses in Mr Walsh’s empire, including the Moorilla Estate winery, beer maker Moo Brew, and DarkLab, operator of the Dark Mofo festival, which launches next week.
Downward Spiral made a profit of $63.9 million in 2024–25, largely driven by a $114 million dividend from an undisclosed source, offsetting ongoing losses from Mona, where a new exhibition by Julian Charriere opens tomorrow, and a new wing and library will open soon.
Breathe is one of the works by Julian Charrier. (ABC News: Selina Bryan)
More visitors to Mona, fewer staff
Downward Spiral wholly owns Moorilla Estate Pty Ltd, which, in turn, owns the Mona gallery.
Last financial year, in separate accounts filed last week, Moorilla Estate reported an 8 per cent jump in Mona visitation to 354,000 admissions, although this remained 15 per cent lower than pre-COVID levels.
Moorilla Estate’s revenue increased by $11 million to $52 million, and the bottom line improved by $15 million with losses shrinking from $63 million to $48 million.
The improvement was driven by a big drop in employee costs, although reported staff numbers doubled to 1,236.
In an email exchange this week, Mr Walsh told the ABC the latest headcount figure included casuals. He said the full-time staff employed at Mona was much lower.
This year’s edition of Dark Mofo launches next week. (Supplied: MONA/Remi Chauvin)
“We reduced staff a lot,” Mr Walsh said. “We reduced costs and had a bit more income, so obviously our financial performance has improved.”
Mr Walsh said the roughly $100 million budget for building works at Mona had not been heavily impacted by the oil shock from the US and Israel’s attack on Iran.
“We were basically finished before the war,” he said. “[We’re] just making local stuff now.”
David Walsh says staff numbers have been reduced. (ABC News: Scott Ross)
Mona ‘isn’t going to fall over’: Walsh
Downward Spiral does not pay tax on its earnings, due to franking, and, as at June 30 last year, was carrying accumulated tax losses of more than $406 million.
Mr Walsh declined to identify the source of the rich dividend stream to Downward Spiral but said: “Mona isn’t going to fall over.”
Mr Walsh told the ABC he hoped eventually to “get the money back” through spin-off businesses like Art Processors, which developed The O digital guide used at Mona and sold to other cultural institutions around the world, and has patented digital queuing technology.
Mr Walsh said he doubted that he would sell Art Processors, also known as ArtPro, “but it will become profitable”.
“Our key assets are our cataloguing system and the queuing patent. But ArtPro has a bunch of other viable assets,” he said.
Julian Charrier’s exhibition opens at Mona tomorrow. (ABC News: Selina Bryan)
Mr Walsh described Mona as a “loss leader, with investment strategies”.
“Mona’s profitability will never be through instruments of Mona,” he said.
“Art Processors has very good products informed by Mona, and we have an expectation that the library cataloguing system will be a worthy product.
“Mona is a showroom, but also a stimulant for insight. Mona will not be a profit centre, but it is an engine for profitability.”
“I’d prefer Mona to be a discoverable enigma [like a gemstone on a beach] to a corporate asset.
“The ideal outcome for Mona is not as a maverick engagement, but an exemplar for other wealthier, more avaricious individuals to do something public-facing with a sliver of their cash hoard.
“I chose Mona over private islands, jets, and big boats. There are plenty of Australians [and others] who wouldn’t have to choose.”
David Walsh and Kirsha Kaechele are the couple behind Mona. (Supplied: Amy Brown)
Downward Spiral’s accounts show the artworks held at Mona are valued at more than $83 million — an amount that has more than doubled over the past eight years.
On the gambling side of his business empire, Mr Walsh’s company Data Processors — which advises clients on betting odds — last month succeeded in obtaining orders from the NSW Supreme Court requiring three former employees and two associates to repay a combined $3.75 million.
Data Processors alleged the former employees had installed code on its software systems that transmitted confidential data out of the company and allowed them and their associates to place their own profitable bets.
Under consent orders approved by the court, the employees agreed to refrain from any further use of the data and agreed to pay $750,000 each to settle the case.
Data Processors is owned by Newfield Holdings Australia, which is itself owned by Newfield Limited, a company based in British tax haven, the Isle of Man.
