RTÉ’s future ‘uncertain’ despite return to profit

RTÉ’s economic outlook remains uncertain, despite it returning to profit for the first time in six years.

The State broadcaster yesterday reported via its annual report a pre-tax surplus of almost €1.1m for 2013, its first annual profit since 2007, despite a further €11m fall in commercial income.

It also noted a post-tax surplus of €658,000. In 2012, the company saw a deficit of €65.2m.

An operating profit before (EBITDA) of €20.7m was also generated; a significant improvement on the €2.2m reported in 2012.

Significant cost reductions and a one-off restructuring cost of €46.2m being incurred in 2012 aided the 2013 recovery. However, overall revenues continued to slide, down by nearly 3%, last year, to €327.6m and commercial revenues hit a new ten-year low of €145.2m.

While noting the effect of some “rigorous financial management” (RTÉ’s employee numbers have fallen by over 20% in five years to a little over 1,850), chairman Tom Savage said that RTÉ’s economic outlook remains “uncertain”.

“Funding was further reduced by the Government’s unexpected budget decision to withdraw an additional €5m from licence fee income, creating fresh financial challenges for the year ahead,” he said.

Mr Savage added: “An increasing number of media organisations are taking advertising from the Irish market and any significant recovery of that market is unlikely to generate income for RTÉ at the level seen in previous years.

“UTV Ireland’s announcement that it will begin broadcasting in January next year will add an important new competitor to the Irish media landscape.”

Director general Noel Curran added that trading conditions are likely to remain challenging.

“Even while the recession is slowly lifting, the overall media market continues to be highly competitive and fragmented, with increasing numbers of UK channels selling Irish advertising; new channels emerging; and an increased migration of viewers to digital services.”

He added that RTÉ will continue on its five-year journey “to transform to a public service multimedia organisation serving Irish audiences with quality content and a breadth of services.

“2013 was the first year of that strategy and good progress was made,” Mr Curran said.