Brighter profit picture for TV3
Published 02/11/2012 | 05:00
TV3 sharply increased profits last year as the company continued to reap the benefits of an internal restructuring of two years ago.
Accounts just filed for TV3 Television Network Limited show that for the year to the end of last December, the broadcaster posted total profits of €3.6m, compared to €1.7m in 2010.
The increase in earnings outpaced revenue growth, which rose a little over 1pc to €54.4m.
The move came despite what the firm described as difficult trading conditions during the year.
"The advertising market contracted significantly since 2007 due to a major downturn in the Irish economy and the directors expect the difficult trading conditions to continue in 2012.
"The directors expect further revenue growth in 2012 on the basis of a stabilising advertising market and maintaining the increase in advertising the company achieved in 2011," the TV3 directors said.
Despite the profits at TV3, the group's parent company Tullamore Beta Limited posted a loss of €6.8m. That loss was driven by bank interest of €2.5m and €5.2m worth of interest on shareholder loans that are wholly repayable after five years.
TV3 is owned by the private equity firm Doughty Hanson.
TV3 boss David McRedmond said his company's year had been "amongst the best in Irish media and is a credit to a low-cost, efficient and creative operation".
He said: "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," he added.