The promoter of the Big Day Out has confirmed the festival will not be returning to Perth, blaming the decision on financial issues.

Poor ticket sales around the country triggered rumours the festival will be scrapped, with the Sydney event, normally scheduled for two days, reduced to just one.

Promoter AJ Maddah has told triple j's Hack program reports the event lost between $8 million and $15 million are about right.

"Probably about the lower end of that, but we're still waiting on all the various numbers to come in," he said.

"I was under no illusion that it was going to be [anything but] a financial catastrophe - to say the least - this year.

"That was not even remotely in my mind, that I was going to walk in there and make any money this year."

He said hosting the event in Perth has become a burden for all involved.

"When you look through the financial history of most of the national festivals, the east coast has to subsidise events in Perth," he said.

"That's another reason why Big Day Out ticket prices were so high this year, because generally speaking you lose money in Perth.

"You've got two days to get there, three days to get back, all the trucking, all the production... a hotel room that you would pay $180 in Sydney is $320 a night in Perth in the same hotel chain. The price of hiring everything is ridiculous over there.

"Combine that will dropping public support for festivals over there and attendance figures and then for all your trouble you get a kicking from the local government and state government.

"It just got to a point where it's become unbearable."