MEDIA GROUP Irish Press plc made a pretax loss of €544,000 last year, as interests including TippFM and the medical marketing company M&C Group suffered the effects of a sharp reduction in advertising income.
Although the group’s losses narrowed compared to the €2 million pretax loss recorded in 2008, executive chairman Éamon de Valera, described the result as “still very disappointing”.
Irish Press’s losses in 2008 were largely due to losses on investments, while its negative outturn in 2009 relates to trading losses.
Turnover increased 20 per cent to almost €3.9 million, the company’s annual results show, however this was due mainly to the full-year contribution from M&C Group rather than a growth in business.
TippFM recorded its first loss in almost 20 years in 2009, having been “severely affected” by the industry-wide collapse in advertising revenues. Costs at the radio station have been reduced to 2003 levels, enabling it to trade at close to break even on a cash basis, according to Irish Press.
The station, which has increased its market share among Co Tipperary listeners to 55.3 per cent, remains under pressure due to poor advertising revenues.
“The current year has been made more difficult by the imposition of the broadcasting levy, which discriminates in favour of RTÉ,” Mr de Valera said.
Mr de Valera said the challenging market conditions in 2009 were holding sway for the current year and would “remain depressed for the medium term”.
Investment income of €348,000 for last year includes €240,000 arising from net gains on the disposal of investments.
Irish Press plc paid €75,000 in emoluments to its directors, with a further €133,000 paid in relation to the management of group companies. Its other directors are Michael Shiel and James Lenehan.
The group employed an average of 59 people last year, up from 56 in 2008.
M&C conducted a strategic review of its business and decided to exit medical publishing, selling trade titles including Scopeand Modern Medicineto rival MedMedia in May of this year.
It also acquired a controlling interest in Cork-based healthcare agency Kanvas Communications Consultants earlier this year.
Mr de Valera said M&C now planned to buy the specialist public relations agency First Medical Communications. The enlarged M&C group is expected to return to profit next year.
