Media&Marketing: The publisher of Ireland on Sunday and the Daily Mail (Irish edition), Associated Newspapers, has recorded pretax losses of €9 million on turnover of €12.9 million, its latest accounts show.
The results, just lodged with the Companies Office, show the company's turnover for the period to the start of October 2005 rising to €12.9 million from €12.6 million in the previous period.
The company, ultimately owned by press baron Viscount Rothermere, has clearly been trimming its costs severely in the past year. In the last period its costs were €36 million, but this has now been cut back to €22.1 million.
This reduction in costs has helped to reduce its losses from €23.7 million in the previous period.
Financially, the company seems to be moving in the right direction, but it is still sitting on accumulated losses of €60.4 million, up from €51.3 million.
Apart from Ireland on Sunday and the Irish edition of the Daily Mail, the company is also a 45 per cent shareholder in the freesheet Metro.
The other shareholders include the Irish Times Limited and Metro International.
It is believed that Ireland on Sunday, which is thought to contribute a large part of the costs, will shortly be renamed the Mail on Sunday (Irish edition).
Associated executives believe that more synergies are possible between Ireland on Sunday, as it is now known, and the Daily Mail (Irish edition).
The accounts show that the company, based in Ballsbridge, is now employing 56 staff, down from 60 in the previous period. The company's wage bill fell in 2005 from €4.3 million down to €4.1 million.
Four directors shared director's emoluments of €267,030.
Associated entered the Irish market back in 2001, when it bought Ireland on Sunday.
Since then, circulation has grown strongly, but achieving financial profitability has proven far more difficult.
Media observers have wondered for some time how the various assets owned by Associated are managed, from the UK or Ireland?
Well according to the latest accounts, ultimate control of the newspapers rest outside the Republic.
"The business is managed and controlled in the United Kingdom," the accounts state.
Youth radio licence bid
Major media companies and several well-known businessman are among those competing for the new youth radio licence in the northwest.
The licence covers counties Donegal, Leitrim, Sligo, Mayo, Longford, Roscommon and Galway.
The Broadcasting Commission of Ireland (BCI) is expected to hold hearings in early September for the northwest regional licence. One of the groups competing for it is Fresh FM, which includes shareholders from Mid-West radio and Supermacs founder Pat McDonagh.
Also taking part in this group is boy band manager Louis Walsh, who is taking a 15 per cent share in the group.
Dan Healy, the former chief executive of 98 FM and NewsTalk 106, and Deborah Fagan, an accountant who worked for several years with Denis O'Brien's Communicorp Ltd, are leading the second consortium, known as i 105 FM.
One of the biggest groups is led by Cork radio station Red FM.
This consortium, which is represented by Dermot Hanrahan, the former chief executive of FM 104, has several major media companies backing it. Thomas Crosbie Holdings, owner of the Examiner, is taking an 8 per cent stake, while the Irish Times Limited is taking a 5 per cent stake. Tommy Higgins, who hails from Co Sligo and is managing director of Ticketmaster Ireland, is also involved. Spin FM, the Dublin youth station is leading another consortium. However, it is not yet clear who else is part of this consortium.
The other consortium is led by Tim Collins, who is already a major shareholder in Ocean FM and several stations in Northern Ireland. His group is called Vibe FM.
TV3's new venture
It increasingly looks like TV3 will become the property of private equity group Doughty Hanson come mid-August.
ITV, a 45 per cent shareholder, has so far shown no desire to trigger their pre-emption rights and make a full bid for the station.
Against this background TV3 itself is moving into new commercial territory.
The station's sales arm, known as CanWest Ireland Sales Ltd (CISL), has secured the exclusive rights to sell Irish advertising on Living TV, which specialises in light entertainment and drama.
The station is currently available in 820,000 homes in Ireland via the NTL analogue platform. This is the first third-party representation contract entered into by CISL or TV3 in Ireland.
Emmet Oliver can be contacted at eoliver@irish-times.ie
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)