RIVER NEWSPAPERS’ titles in the northwest are now trading profitably after the group recorded losses of €8.2 million in 2009 across 13 papers that it published at the time.
Speaking to The Irish Timesyesterday, co-founder and shareholder Tim Collins said: "We now have six titles all trading well and in profit. The future is a lot brighter now than it was 18 months ago."
Mr Collins said the group has been significantly restructured. It now publishes seven newspapers: the Letterkenny, Donegal, Finn Valley, County Derry and Kildare Posts, the Inish Times and the Derry News.
Its staff numbers have reduced from 200 to about 70.
Accounts filed recently for River Newspapers Holdings Ltd show it took a provision of €4.6 million in 2009 against amounts due from subsidiaries that had ceased trading.
The company had accumulated losses of just more than €5 million and a deficit in its reserves of €3.5 million.
Its accounts show that the entity behind the Letterkenny Postrecorded a loss of €4.1 million while the Donegal Postlost €1 million.
Its title in Monaghan, which has closed, lost €693,946.
River Newspapers’ auditors, Flannigan Edmonds Bannon, qualified its opinion in the accounts and cast doubts on its ability to continue as a going concern.
Mr Collins said these issues have been addressed.
“We made losses at the beginning of the year but in the final two quarters we were profitable and we finished the year on target,” he said.
“All six titles are in the black and ad revenues were ahead of target. The ad market has shrunk but the rot has stopped,” he added.
Mr Collins said the six titles have a combined circulation of about 50,000 a week. The Letterkenny Postand Kildare Postare free newspapers.
River Newspapers closed the Sligo, Meathand Cavan Postslast year as part of the company's restructuring programme.
River Newspapers was founded in 2005 by Mr Collins and Pádraig O’Dwyer.
The two businessmen are also investors in a number of local radio stations.
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