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Journal.ie's publisher in €1m deficit jump to €3.3m

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Director Brian Fallon

Director Brian Fallon

Director Brian Fallon

THE company that publishes online news website TheJournal.ie had liabilities of €3m last year, a significant increase on 2012.

Accounts filed at the Companies Registration Office (CRO) for Journal Media showed that at the end of last year there was a shareholder deficit of almost €3.3m.

This was a significant increase on the deficit in its results for 2012, when the figure was €2.3m.

restructuring

According to the accounts, Journal Media's biggest creditor was parent company DML Capital, which it owed almost €3.5m at the end of last year, up from €2.1m the previous year.

It owed Daft Media, publisher of property website Daft.ie and also a subsidiary of DML Capital, €33,400 at the end of last December, up from €23,915 in 2012.

"Amounts owed to related parties are unsecured, interest-free and repayable on demand," the accounts state.

While its liabilities increased in the period, the amount owed to the company by its debtors also increased, from €145,268 at the end of 2012 to €430,763 last year.

Journal Media also underwent a restructuring of its capital and share structure in the period.

Meanwhile, records for the same period for DML Capital, directed by brothers Eamonn and Brian Fallon, showed net assets of more than €20m.

The Fallons made their fortune with Daft.ie, which they set up in 1997 when they were aged only 20 and 15.

Brian Fallon said in an interview last month that Journal Media was "within a hair's breath" of making a profit, but that the focus was on investment.

TheJournal.ie announced it was to create 35 jobs, which would increase its total staff number to 80.

"We're investing over the next couple of years. We think there's an opportunity to get bigger, but it's time-bound. The opportunity is now," said Mr Fallon.

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He said the goal was to double readership in Ireland and "take advantage of opportunities overseas".

"The scale of what we have set out for ourselves is pretty big," he said.

expand

The company has predicted a turnover of €5m for next year, and it is planned that the website will expand its coverage of sport and business including an element of rebranding.

Total losses at the company in 2012 were €1.14m, when the firm's losses had widened from €894,000 in 2011.

In his interview, Mr Fallon said that in 2012 the company started "getting serious" and opted for a "mobile first" strategy of breaking news. He said one-third of the website's revenue came from native advertising.

"We're the pioneers of native advertising in Ireland," he said.

hnews@herald.ie


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