Sharp fall in ad revenue at Clare FM
ADVERTISING REVENUES fell sharply at Clare FM last year, pushing the radio station into the red.
Documents just filed by Clare Community Radio Holdings plc to the Companies Office show that the station recorded pretax losses of €127,083 last year, having recorded a pretax profit of €253,409 in 2008.
The negative swing of €380,492 follows advertising revenues dropping by 21 per cent last year from €2 million to € 1.6 million.
The loss last year follows successive profitable years at the company, with accumulated profits standing at €1.05 million at the end of 2009.
Last year’s losses were pushed higher by reorganisation costs totalling €122,449.
The 2009 accounts show that the numbers employed by the station last year fell from 32 to 28. Staff costs dropped from €1 million to €940,796.
The filings show that while revenues fell by 21 per cent, Clare FM’s operating expenses dropped by 7 per cent from €1.7 million to €1.6 million.
The company yesterday declined to comment on the results. The station also declined to respond to a query that it was recently involved in talks on the acquisition of the Clare People newspaper, which was established in 2005.
It is understood that the proposed deal fell through in recent weeks.
During 2008, Clare FM was on the verge of being sold to Radio Kerry in a €7.2 million deal which was set to provide a major windfall for its shareholders. That deal also fell through.