RTÉ posts €16.8m losses for last year

SUBSTANTIAL REDUCTIONS in commercial revenues and licence fee income resulted in broadcaster RTÉ posting a loss of €16.8 million in 2011. This compared with a deficit of €4.7 million in the previous 12 months.

Chairman Tom Savage described this as a “creditable performance in the circumstances” and said the broadcaster would have reported a “small surplus” were it not for Government-imposed reductions in its licence fee income.

RTÉ’s annual report, published yesterday, show its commercial revenues declined by 5 per cent to €167.3 million.

Its licence fee income fell by €12.4 million to €183.6 million as a result of reductions imposed on the company. This involved payments to TG4 and the percentage of funding given to the Sound and Broadcasting Fund rising from 5 to 7 per cent.

In the report, director general Noel Curran stated that while the outlook for the business remained challenging in the short term due to the weak economy, he remained “committed” to the goal of RTÉ achieving break-even in 2013.

RTÉ is undertaking a restructuring programme to reduce its operating costs by €25 million a year. These costs have already declined by 20 per cent since 2009 and reduced to €367.7 million last year from €376.4 million in the the previous 12 months.

RTÉ television advertising revenue fell by €6.3 million in 2011 while radio was down €3.5 million.

The broadcaster boosted other commercial revenues by €1.4 million to leave it with an aggregate deficit of €8.4 million.

At the end of 2011, the company employed 2,093 staff, including part-time and casual employees. This compared with 2,151 in 2010.

Its cash flow reduced by €2.5 million to €60.7 million.

RTÉ also drew down a loan of €38.25 million from Barclays Bank to fund infrastructure for digital terrestrial television.

RTÉ’s pension scheme has been assessed under three different accounting methods, which estimate that its deficit ranges from €25-€72 million.

The scheme trustees may be required to prepare a proposal for the Pensions Board to address the deficit, the report states.

RTÉ One television continues to be the broadcaster’s best performing station. It achieved a profit of €2.7 million last year, although this was sharply down on the €9.9 million surplus in 2010.

RTÉ Two’s deficit widened to €17.6 million from €13.4 million in 2010.

RTÉ Radio One’s loss narrowed to €104,000 last year from €314,000 previously, but 2fm had a deficit of €5.4 million compared with €3.2 million previously.

The report shows that Mr Curran received a basic salary of €229,000 in 2011, having taken up the role on February 1st of that year.

He also received other benefits of €58,000 to bring his remuneration to €287,000.

Cathal Goan, who stepped down as director general on January 19th, earned €48,000 last year, including €12,000 in basic salary.

Mr Goan was paid €309,000 in 2010, including a basic salary of €261,000.

No bonuses were paid to the director general in either 2010 or 2011. Mr Goan had an accrued pension at the time of his exit of €130,000.