Tribune Newspapers records loss of more than €5m in 2008

TRIBUNE NEWSPAPERS plc, which publishes the Sunday Tribune,incurred a loss of just over €5 million in 2008 as revenues shrank by 15.7 per cent.

This was 78 per cent greater than the €2.8 million loss booked in 2007. The deficit in shareholders’ funds was €50.8 million at the end of December 2008.

Accounts just filed by Tribune show that Independent News & Media (INM), which has a 29.99 per cent stake in the business, advanced a loan of €2.25 million to the newspaper last year.

This brought INM’s outstanding loans to Tribune to €15.27 million by the end of 2008.

The loans carry an interest rate of 8 per cent and had accrued €3.9 million in interest payments up to the end of last year.

The operating loss was €2.7 million in 2008 and Tribune managing director Michael Roche said the paper was likely to record a similar operating loss this year due to the effects of the recession on advertising income.

In a bid to stem its losses, Tribune implemented a cost-cutting programme late last year to trim €2 million from its expenses.

Mr Roche said this had been implemented but more cuts would be necessary.

“We are currently in the throes of putting a further rationalisation programme in place,” he said, adding that he would meet staff in the coming weeks to discuss the cuts. “All costs are under review.”

Mr Roche dismissed suggestions, which have circulated in the industry recently, that the future of the Sunday Tribunewas under threat in light of INM's difficulties.

“They continue to support the paper. The demand [from the board of INM] is to break even.”

A spokesman for INM said: “INM’s commitment to the Tribune has not changed, not least given its ongoing progress in reducing its cost base.”

Tribune chairman Gordon Colleary, in a statement accompanying the accounts, said the paper had budgeted for an operating loss last year of less than €1 million. “However, the collapse of advertising revenues in the second half of the year pushed operating losses for 2008 to €2.7 million.”

Auditor KPMG included a note in its report about the company’s status as a “going concern” although it stopped short of qualifying the accounts. “The assumptions used by the directors in forming their view are not without uncertainty,” KPMG said.

Turnover declined to €9.6 million last year from €11.4 million. Its 59 staff were paid €4.4 million, while directors’ remuneration rose by 3.3 per cent to €326,000.