FM 104 chief to step down when SRH takeover is completed

The chief executive of Dublin radio station FM 104, Mr Dermot Hanrahan, is to leave his position to pursue other business opportunities.

Mr Hanrahan, one of the most experienced executives in the radio sector, is expected to step down when the €30 million takeover of the station by Scottish Radio Holdings (SRH) is completed shortly.

The takeover is awaiting final approval from the Tánaiste, Ms Harney. It has already been approved, with conditions, by the Competition Authority.

Mr Hanrahan could make about €3 million for his 10 per cent stake.

His departure means SRH will have to appoint a chief executive to run the station, although Mr Hanrahan may play a part in the selection process.

Mr Hanrahan will remain a director of Capital Radio Productions, which owns FM 104. It made an operating profit of €530,502 for the year to June 2002.

When contacted yesterday, Mr Hanrahan said it was "time to move on", although he would work with SRH to ensure a smooth transition. He said he enjoyed turning FM 104 around over the past decade but it was time for someone else to take charge. He said, under the SRH deal, FM 104 would become part of a plc.

He said another reason for leaving the station was that FM 104's listenership figures were rising and, in the last six months of 2003, it drew level with rival 98 FM, with both stations reaching 22 per cent listenership.

Mr Hanrahan remains a major shareholder in Cork station Red FM and has interests in some internet businesses. There is also a possibility he will apply for one of the four licences to be issued for Dublin by the Broadcasting Commission of Ireland.

The former managing director of Lite FM, Mr Martin Block, has already indicated he is interested in these new licences.

Most of the early "expressions of interest" for the licences called for a rock-based station to be set up. Mr Hanrahan is one of the few radio operators with previous experience in this area - he ran Rock 104 in the early 1990s.

Several FM 104 shareholders could be in line for another large payout if Red FM, which is not part of the SRH acquisition, is sold. Several FM 104 figures - including Mr Hanrahan, financial officer Mr Tim Fenn, broadcaster Mr Colm Hayes, head of sales Ms Margaret Nelson and programme director Mr Dave Kelly - have shareholdings in Red FM.

Estimates by experts yesterday put a value of €15-€20 million on Red FM, which is one of only two commercial stations in Cork.

Apart from the FM 104 management figures, Thomas Crosbie Holdings has a 20 per cent shareholding, while promoter Mr Jim Aiken has a 5 per cent stake.

Because the station was only licensed in February 2002, a sale is unlikely in the short term but its progress in Cork could make it a buyout target. Its main competitor is UTV-owned Cork 96 FM.