Pre-tax profit of €2.1m at Irish Times

The Irish Times Ltd made a pre-tax profit of €2.1 million last year, compared with a loss of €28.3 million in the previous year, the company said today.

The turnaround was largely the result of the company booking a pension credit of €5.1 million for the year. The credit followed an agreement reached with staff last year to curtail future pension increases to 2 per cent per annum.

Group turnover from continuing operations fell last year by 6.7 per cent to €86 million. While circulation income was stable, advertising revenues weakened.

The company, which publishes The Irish Times newspaper and has other media investments, made an operating loss of  €633,341 from its day-to-day trading activities last year.

This compared with an operating loss of €4.6 million in 2009.

The Irish Times’ cash balances were reduced by €2.1 million during the year and amounted to just more than €11 million on December 31st 2010.

The Irish Times reduced its cost base by about €10 million in 2010. It has removed over €30 million from its cost base over the past two years.

The deficit in the group pension scheme declined by €11.25 million in the 12-month period to €27.9 million. This followed an increase in the value of scheme assets following an improvement in global investment markets.

The accounts state that former editor Geraldine Kennedy, who retired on June 23rd of this year, was given an ex gratia payment of €250,000 in exchange for reduced pension rights.

Ms Kennedy was paid €319,000 as editor of this newspaper in 2010 - the same level as the previous year.

She was replaced as editor by Kevin O’Sullivan, formerly the news editor.

The managing director was paid €300,000 last year compared with €319,000 in 2009. Maeve Donovan resigned as managing director on February 3rd, 2010 and was replaced by Liam Kavanagh on March 10th. Mr Kavanagh earned €259,000 in 2009 as deputy managing director.

Paul O’Neill, who was deputy editor in 2010, was paid €173,000. This was the same level as in 2009. Mr O’Neill stepped down as deputy editor recently and the role is now held by Denis Staunton, formerly the foreign editor.

No bonuses were paid to executive directors last year, mirroring the position in 2009.

David Went, the non-executive chairman of The Irish Times Ltd, was paid a salary of €87,000, the same level as in 2009. He received director’s fees of €9,347.

The non-executive chairman of The Irish Times Trust Ltd was paid a salary of €41,000 last year and director’s fees of €9,347. Ruth Barrington replaced David McConnell in this role on May 4th, 2010.

Non-executive directors were paid €10,960 in fees plus €9,120 for service on board sub-committees.

Tom Arnold, a non-executive and governor of The Irish Times Trust Ltd, waived his director’s fees last year.