2fm’s ad revenues climbed 20% last year, says RTÉ
Radio station will soon return to ‘net contributor’ status, according to boss Dan Healy
Dan Healy, the head of 2fm and RTÉ’s commercial director of radio, says listeners are responding positively to the new line-up. Photograph: Conor McCabe
The music station, which has been struggling in recent years, would start to become a “net contributor” to RTÉ later in 2015, Mr Healy said. Commercial income is running up sharply in the year to date.
The RTÉ executive, who was hired by Montrose from the independent sector in 2013 and tasked with turning the station around, was speaking after the publication of the radio audience figures for 2014.
The latest Joint National Listenership Research (JNLR) survey showed a continuation of a recent positive trend for Ryan Tubridy, who has swelled his audience by 25,000, or 16 per cent, to 177,000 over the course of a year.
But the figures did not conclusively show that the changes made to the schedule last spring are working.
Radio listenership figures are released quarterly but are based on a rolling 12-month survey of about 16,700 people, which means it can take time before the impact of any schedule changes can be seen.
Mr Healy said the advertising-buying agencies were “supporting” the station. 2fm also signed a number of sponsorship deals last year, with Berocca, SuperValu and Aldi now attaching their names to Breakfast Republic, Tubridy and The Nicky Byrne Show with Jenny Greene respectively.
After a number of rough years, the radio advertising market was flat last year at an estimated €86 million, according to figures from media buyer Carat. It has pencilled in 4 per cent growth this year.
According to the latest published figures, 2fm made €4.4 million in commercial revenues in 2013, but the gross cost of its operations arrived at €11 million.
This meant that instead of generating a surplus RTÉ could use to subsidise other services, as it did during the boom, it recorded a deficit of €6.2 million.
Between 2009 and 2013, 2fm recorded deficits totalling €21.3 million.
It last made a surplus in 2008, a year in which its commercial revenue topped €20 million. The station was badly affected by the collapse of the advertising market, competition for younger listeners and the death in 2010 of its most popular presenter, Gerry Ryan.