Denis O'Brien's Highland Radio in Donegal recorded pre-tax profits of €584,951 on turnover of just under €2.8 million in the year to the end of March last. This represented a profit margin of 21.2 per cent, according to accounts just filed.
Highland managing director Charlie Collins said the station expects to increase its revenue in the current financial year by 7-10 per cent: "We're having a very good year and we're well on the way to meeting our targets."
Mr O'Brien acquired Letterkenny-based Highland late last year as part of a €200 million deal with UK media group Emap to acquire its three Irish radio stations. He is expected to offload Highland in the near future.
Highland's accounts show its revenue rose during the 12-month period by 7.1 per cent. Its administrative expenses increased by 6.1 per cent to €2.2 million.
The station posted an operating profit of €542,917, up from €487,528 in the previous year. Its interest income almost doubled to €42,034 to give it a pre-tax profit of €584,951. When corporate tax of €77,530 is deducted, Highland was left with an after-tax profit of €507,421.
Its accumulated profits at the end of March 2007 stood at €1.98 million. No dividend was paid to Emap during the year.
Highland's accounts show that its 28 employees earned €625,740 between them in wages and pension costs. This was down about €60,000 on the previous year when its number of staff was 32.
Directors' remuneration and other benefits increased during the year to €187,533 from €155,677.
Highland has the biggest market share of any local radio station here. Last week's JNLR radio listenership figures showed it had a market share of 62.5 per cent between January and December 2007, down 0.9 per cent on the previous period.
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