Profits at the Royal Dublin Society declined by €353,000 in 2006 to €1.7 million, largely due to an increase in its depreciation charge.

The Ballsbridge-based society's latest annual report, which was sent to members this week, shows that the depreciation charge increased from €694,000 in 2005 to just over €1 million last year.

Total income at the RDS increased by 1.7 per cent to €13.2 million, aided by a 25 per cent increase in the number of events held at the premises, which is the busiest event centre in the country.

These included the staging of Leinster's Heineken Cup match against the Glasgow Warriors, Michael Flatley's Celtic Tiger production and the final night of Take That's reunion tour. The main arena also hosted the annual Dublin Horse Show, which generated €3.2 million in revenues but cost €3.3 million to run.

Income from membership subscriptions was flat at €520,000.

The RDS's spending last year amounted to €11.8 million, a rise of 6 per cent on 2005.

Payroll costs increased by 4.8 per cent to just under €4 million.

The society spent €3.1 million during the year to upgrade various facilities throughout the 42-acre complex.

This included installing new catering facilities, improving car-parking at its Simmonscourt event site and a new grass/soil surface for the main arena. Floodlights and new seating are also being installed to create a 20,000-seat venue that will be used by Leinster and Lansdowne rugby club from September.

The society received a €1 million grant from the Government last year to help offset the upgrade of the main arena.

The RDS also spent €13.6 million on the construction of a 4,799sq m office block on Simmonscourt Road.

In November, it agreed a deal with Irish Distillers to rent three of the five floors of the building. A second block of the same size is due to be completed by December.

"The progress of the office development combined with the investment in our sporting facilities and service infrastructure, underpinned by the growth in our commercial business, positions the society to meet future competitive challenges with confidence," said Matthew Dempsey, chairman of the board of the RDS's management council.