The city council-owned company running Dunedin's new Forsyth Barr Stadium, Dunedin Venues Management Ltd (DVML), lost $1.9 million in the first six months of the 2011-12 financial year.

DVML chief executive David Davies said on Wednesday the fault lay with a combination of challenging trading conditions and the failure to attract another major musical act to rival Sir Elton John.

This meant lower-than-expected revenue from rent, tickets, food and beverage sales and merchandising, he said.

Dunedin Mayor Dave Cull said the cost of operating the new venue was now becoming clear, but a review was needed to examine the way the stadium operated.