TV3 loss widens in 2015

Exclusive rights to broadcasting the 2015 Rugby World Cup last year failed to turn around the fortunes of TV3 as pre-tax losses more than doubled to €16.95 million.

New figures show the firm behind the independent broadcaster TV3 Television Network Ltd sustained the 118% increase in pre-tax losses as revenues tumbled by 16.5% from €46.6m to €38.9m.

The directors state that TV3 last year launched a new schedule anchored by Irish programming including the exclusive rights to the 2015 Rugby World Cup and its new series Red Rock.

They state: “Despite the new programming, the increased market competition resulted in a decrease in the TV3 advertising revenue in 2015,” adding that: “The decrease was partially mitigated by cost savings delivered from the loss of the ITV content, the company experienced a reduction in profitability in the year.”

The directors point to the increasingly competitive landscape in TV advertising here with Channel 4 launching two dedicated Irish channels and Sky launching four Irish channels, in 2014.

Last year, Virgin Media, subsidiary of US billionaire, John Malone’s Liberty Global, bought TV3 for €80m. It subsequently acquired UTV Ireland for €10m from ITV, in July this year.

According to the directors for the TV3 firm, a combination of the acquisition of ITV content, further investment in improved 2016 and 2017 programming scheduling, and continued growth in the advertising market will boost the firm.

Staff numbers at TV3 last year fell from 274 to 261 and the company incurred €782,000 in restructuring costs. Staff costs increased from €14.39m to €15.97m.

The accounts show the pay to directors, including pension payments, last year almost tripled from €648,000 to €1.88m. The €1.88m sum includes a €660,000 “for compensation for loss of office and other termination payments”. No further detail is provided.

The accounts confirm that in October 2015, Christopher Fielding retired as director while former CEO David McRedmond retired in early January. Also in January, Aodha O’Connor retired from the board. Graeme Stening only served on the board for two months before stepping down.

Liberty Global also purchased Virgin Media — the cable company formerly called UPC Ireland. Separate figures show Virgin Media had a loss of €122m last year. The new accounts filed by Virgin Media Ltd show the business posted the 20% drop in earnings.