RTÉ has reported a deficit of €2.8 million for 2015, as costs rose by more than its revenues, its annual report shows.

The broadcaster highlighted a €2.6 million negative impact from foreign currency movements on its sterling and dollar-based costs, which include programming acquired from overseas.

Total revenue rose €6.1 million or 1.9 per cent to €334.3 million. However, operating costs swelled €8.4 million to €320.3 million as RTÉ took on more staff.

Excluding the impact of currency markets, non-personnel costs fell compared to 2014, a World Cup year.

Commercial revenue increased 4 per cent to €155.4 million, which RTÉ said was “underpinned by overall economic growth”.

Despite the extra competition posed by the launch of the UTV Ireland channel and a rise in the number of UK-based channels selling advertising in the Irish market, television advertising and sponsorship revenue rose 2 per cent.

The broadcaster’s share of licence fee revenue, meanwhile, also rose, but only by €300,000 to €178.9 million. RTÉ said it was declining in real terms.

“Given the general overall improvement in economic conditions and the growth in net new household formations, this was a disappointing outcome,” the annual report states.

Operating profit in 2015 arrived at €14 million, which RTÉ described as “solid”. In 2014, this figure was €16.3 million.

Kevin Bakhurst, deputy director-general of RTÉ and the managing director of RTÉ News and Current Affairs, said licence fee evasion, together with a rise in the number of homes without a television set, were "creating a critical environment for RTÉ and its ability to support the wider cultural sector".

“Without a meaningful review of public funding, RTÉ will remain financially challenged, and unable to maintain or increase investment in the sector, or to invest in important investigations, drama development, and landmark factual programming,” Mr Bakhurst said.

The Department of Communications has calculated that the rate of evasion is 14 per cent, with some €25 million lost from the broadcasting sector as a result.

Minister for Communications Denis Naughten said RTÉ’s performance had to be viewed in the context of ongoing reductions in public funding, as well as the competitive commercial market.

He agreed that licence fee evasion - which is three times the estimated rate in the UK - had to be tackled as a matter of urgency.

“I will bring proposals to Government later this year that will address the sustainable funding of public service broadcasting to ensure the public continues to have access to Irish produced content.”

Mr Naughten said he looked forward to meeting RTÉ’s new director-general Dee Forbes in the coming weeks. Ms Forbes took up her position in Montrose last week.

Proposals for the sale of some of RTÉ’s lands at Donnybrook have been developed and are under consideration by the board.

“A successful sale of a portion of the site could release much-needed resources for capital investment and to underpin the organisation’s multimedia work,” said RTÉ chairwoman Moya Doherty.

An upgrade of RTÉ’s transmission network is understood to be one of the planned projects. The broadcaster is also planning to launch Saorview Connect, the latest iteration of the Saorview television platform, in partnership with UK company Freesat later this year.

Despite the rise in operating costs in 2015, costs remain 27 per cent lower than they were in 2008. Licence fee revenues received by RTÉ are 11 per cent or €22 million lower than they were in that year, while commercial revenue is down 35 per cent or €85 million in that period.

“RTÉ will continue in its efforts to manage costs and grow revenues, to deliver for audiences with our programming and services, and continue innovating with new digital products and services,” said Mr Bakhurst, who served as acting director-general in the interim period between the departure of former director-general Noel Curran in May and the arrival of Ms Forbes.

For the second consecutive year, the number of people employed by RTÉ increased. As of the end of 2015, it had 1,978 employees, with 285 of these part-time or casual.

This has risen from 1,899 as of the end of 2014, of whom 297 were part-time or casual. At the end of 2013, it had 1,856 employees, with 260 part-time or casual.

Pay cuts taken by staff in 2009 are now in the process of being restored on a phased basis.

RTÉ’s deficit for 2016 is expected to be higher than the €2.8 million recorded last year.

Cost pressures have intensified throughout this year because of the cost of broadcasting events such as the 1916 centenary celebrations, the general election, the European Championship and the Olympic and Paralympic Games. The broadcaster sub-licensed the rights to 22 matches in Euro 2016 to TV3 in order to reduce its expenses and recoup some revenues.