Communicorp revenues increase 21% to €57m

REVENUES AT the Denis O'Brien-backed owner of national radio stations Today FM and Newstalk hit €57 million last year, while the group had an operating profit of €760,000.

Radio group Communicorp, which Mr O'Brien owns, grew revenues last year by 21 per cent to €57 million from €47.2 million, according to its latest accounts.

Communicorp owns 44 stations in nine countries.

The accounts show that its Irish business, which last year included Newstalk and Dublin stations 98FM and Spin103.8FM, generated €31.4 million in sales.

Its operations in northern and Eastern Europe and Jordan were responsible for the remaining €25.6 million in turnover.

Net of €51.8 million in costs, the group was left with a €5.2 million surplus.

The profit and loss account record two charges totalling €4.45 million for depreciation and amortisation of goodwill against the value of its radio stations.

This left it with group operating profits of €760,000 last year, compared with a loss of €6.8 million in 2006.

After a €2.7 million interest bill, Communicorp recorded a pretax loss of just under €2 million.

This was a 60 per cent reduction the 2006 pre-tax losses of €5.4 million.

During the year it spent €11.5 million on acquiring radio stations, including purchases in Latvia and Jordan.

According to its directors' report, the financial statements record the carrying value of 98FM, Spin and Newstalk at €6 million, while all others are held at a carrying value of €24 million.

The report, signed by Mr O'Brien and chief executive Patrick Halpenny, adds that in the directors' opinion the company's radio stations are worth significantly more than their carrying values in the financial statements.

"This view is supported by recent media transactions and third-party independent valuations received," the report states.