Restructuring costs contributed to Storyful, the Irish arm of Rupert Murdoch’s News Corp social media intelligence and news agency, recording pre-tax losses of €6.78m last year.
New accounts show that Storyful Ltd recorded the pre-tax losses as revenues decreased by 10pc from €5.08m to €4.57m in the 12 months to the end of June last year.
The directors stated that revenues declined due to the geographical movement of some contracts to other group undertakings.
The directors stressed that not all of Storyful’s global revenues are included in the results and that these related only to the Irish-based entity, Storyful Ltd.
They said that last year, Storyful continued to expand services for media, brands and social platforms and continued to invest in the product and technology departments.
The pre-tax losses of €6.78m last year follow pre-tax losses of €8.97m in the prior period.
The business last year recorded the pre-tax losses after incurring restructuring costs of €852,526 last and this followed restructuring costs of €333,398 in fiscal 2020.
A note attached to the accounts states that the restructuring costs relate to a business restructure in February and March last year.
Numbers employed at the business last year declined from 112 to 89 as staff costs reduced from €8.36m to €6.5m.
Former RTÉ Prime Time presenter Mark Little set up the company in 2010 and Mr Little and the company’s investors sold it to News Corp for €18m in December 2013.
A note attached to the accounts state that the directors have considered the losses to date and report they are satisfied that appropriate measures have been taken to bring about the company’s profitability.
They state that the funding provided by the shareholder is sufficient to enable the company to meet its obligations as they fall due.
News Corp ploughed another €6.99m into the business – which calls itself the world’s first social media newswire – last year.
The firm’s accumulated losses of €48.8m were offset by share premium account of €56m and called up share capital of €389,075 resulting in shareholders’ funds of €7.6m at the end of June 2021.
The loss last year takes account of non-cash depreciation costs of €331,178 and non-cash amortisation of intangible assets of €1.15m.
Directors’ pay last year increased from €684,321 to €640,471.