TV3 reports €6.8m loss last year

TV3 reported a €6.8m loss last year despite a 2% increase in annual revenues and a 28% rise in earnings.

TV3’s group financial statements show a rise in full-year revenues from €57.3m to €58.6m; and EBITDA (earnings before interest, tax, depreciation and amortisation) going from €4.3m to €5.5m. However, after bank interest of €2.5m and non-cash items, the broadcaster reported a loss of €6.8m.

Group chief executive David McRedmond called the performance — which also saw operating profits (before exceptional items) rise from €2.7m to €3.3m and new businesses like TV3.ie and sister channel, 3e continue to grow — “amongst the best in Irish media” and “a credit to a low-cost, efficient and creative operation”.

He added: “The double-dip recession has caused the most difficult known operating environment for media in Ireland and there is substantial value to be recovered in the years ahead.

“For TV3, the recession is exacerbated by the snail’s pace of market reform which sees the Irish broadcast market lagging far behind the rest of Europe.

“I urge the minister and the Government to reform the market immediately so the sector can create jobs and provide better choice for viewers.”

Last year TV3 invested €1m on high definition facilities, with that spend increased this year through the construction of Ireland’s first major HD broadcasting studio. The group also generated €2.8m from continuing operations last year. In terms of audience share, 2011 saw the group rise by 3% to 3.65 million viewers per month.

The main TV3 channel’s share of the Irish television audience was 55% higher than that of RTÉ Two and was larger than the likes of BBC1, BBC2, Channel Four and UTV combined.

Turning to the current year, TV3 management said that its 2012 performance has been “highly volatile”, but is anticipated to deliver EBITDA growth.

“Although TV3 Group is outperforming the market, trading conditions remain extremely challenging, while the market dynamic is changing following the binding Competition Authority agreement which required RTÉ to abolish its share deal system from July 2011. TV3 Group continues to push for policy reform, including the elimination of market-distorting deficits in RTÉ,” the company said.