Irish Times Group increases profits but warns of Covid-19 impact on revenues

The Group includes the Irish Examiner and The Echo titles.

The Irish Times media group increased operating profits by 46% last year to €3.82m but said it forecasts a significant decline in revenues for 2020 due to the impact of the Covid-19 pandemic.

The company's latest accounts show the group, which includes the Irish Examiner, The Echo and a number of regional titles, increased turnover by 17% to €110.1 million and the group finished the year with net cash of €16.6m.

The 2019 results include a full year of trading from The Examiner Group which was acquired by the Irish Times midway through 2018.

Revenues from consumer content grew by 25% according to the Directors' Report. "Our strategy to grow direct consumer relationships is having a positive impact with Digital revenue showing further improvement of +16%."

"We had 89,688 home delivery and digital subscribers at the end of 2019. Profitability improvement is ahead of Revenue growth through the implementation of cost-saving initiatives during the year."

Looking forward the report states that the Covid-19 pandemic is and will continue to be a large risk for the entire business in 2020 and 2021."Group Revenue is forecast to significantly decline in the second quarter of 2020, largely driven by accelerated advertising and circulation declines, partially offset by an increase in our subscriptions," the report notes. 

"Cost-cutting plans have been put in place to mitigate this in the short and medium-term, and the business is continually being evaluated so that we can emerge from this crisis as a sustainable business prepared to operate profitably in a changed environment."

Managing Director of the Irish Examiner and The Echo Majella Gallagher said the figures show a business which is progressive and stable in the most uncertain of times. "We’re hugely heartened by the renewed interest in high quality, trustworthy journalism, which has fuelled a growth in demand and revenues from our content. We fully intend to meet the demand for reliable news and information and enhance our services, especially in the digital area, into 2021," she said.

Despite the impact of the pandemic the Irish Examiner has implemented a range of changes including the implementation of a new content management system and website redesign that has resulted in a 20% increase in traffic.

In July, the Irish Examiner announced a partnership with Cork GAA to provide exclusive live streaming of football and hurling club championship games up to the end of 2022. The Examiner also relaunched its Weekend supplement and established the Munster Business Hub encompassing business in Munster, farming, homes and property content. Last year's sold-out ieStyle Live charity event will return in a virtual format with details to be launched this weekend.