Soccer helps Setanta to score an increase in turnover

ACCOUNTS FOR two UK-based companies in the Setanta Sports team shed some light on the financial performance of the Irish broadcaster, which is run by its founders Leonard Ryan and Michael O'Rourke.

Setanta Sport Ltd, which undertakes "sales, marketing, customer management, negotiation and ancillary services" in Britain for other companies in the group, scored a big increase in its turnover, helped by its live coverage of English Premier League football for the first time.

Revenues rose to £31 million last year, compared with £1.2 million in 2006. The company had an operating deficit of £18,418 and also incurred losses of £1.1 million relating to a joint venture.

Setanta Sport Ltd closed 2007 with accumulated losses of £1.6 million although the directors' report states that it should be profitable this year.

"In 2008 the company brought a number of contracted third-party services in-house, which should have the benefit of lowering cost . . . and ultimately increasing profits."

Separately, Setanta Transmissions (UK) Ltd saw its profits decline sharply in spite of a large rise in its revenues.

Turnover rose to £17.3 million from £10.8 million in 2006 but its after-tax profit fell to £67,622 last year from £211,810 in the previous 12 months due to a large rise in various costs.

These companies are mere players in the Setanta team, which has group revenues of about £500 million but is loss making. Debts total is about £150 million.

Setanta faces a big year in 2009 with the key Premier League rights up for renewal. It paid £392 million last time found for a three-year contract.

Its backers - who include Barry Maloney's Balderton Capital, TV3 owner Doughty Hanson, Davy private clients and Enterprise Ireland - must be hoping that the financial crisis will be reflected in the prices paid next time round.