Financier turns film-maker; tenors sing from new balance sheet; Radio Nova presses ahead; and is it time to envy Iceland?
Financier makes film on difference between Ireland and Iceland
IRISH FINANCIER Max Doyle hasn’t been letting the grass grow under his feet since taking his leave of Dublin-based private equity group Claret Capital in the summer.
Doyle has spent the past week in Iceland with a film crew in tow, working on a documentary about the collapse in the economy there and the comparisons with Ireland.
He has been meeting various movers and shakers, including the president, the financial regulator, the new banking chief executives, and union and employer groups.
“We hope to make a documentary on this and see where it goes,” he said.
“My value is being able to understand the whole banking and regulatory system.
“When I look at commerce in Ireland, which is how I try to make my living, it’s very difficult to see where the bottom [of the economic downturn] is.
“I wanted to come here [Iceland] and get some data points. Then the project got more and more interesting.”
Back home, Doyle is planning a return to the investment business in the near future, with funding from private investors.
“I’m getting involved in a new business that will look at distressed investments in Ireland,” he said. “We’ll look at insolvent and pre-insolvent opportunities in Ireland. It could save jobs as well.”
Speaking to me from Reykjavik, Doyle also outlined his reasons for departing Claret after almost four years with the firm. He said rumours of a serious rift with Claret founder Dómhnal Slattery were wide of the mark.
“There was no falling out,” he said. “In fact, we’re meeting for lunch next week.
“For Claret, the opportunities will lie in the aviation sector and that’s not an area I have any background in at all.”
Doyle remains a shareholder with Claret, owning about 7 per cent of the business, which is being restructured by Slattery and his partners.
Doyle previously worked for Cardinal Asset Management, Dolmen Securities and Bankgesellschaft Berlin in the IFSC.
Celtic Tenors have finances fine-tuned
IT'S BEEN a struggle but the Celtic Tenors - Matthew Gilsenan, James Nelson and Daryl Simpson - have fine-tuned their finances after more than a decade on the road.
Meath-born Gilsenan told me this week that, while turnover will be down this year, profits will be on a par with 2008 - a neat trick that involves the venues they play bearing more of the costs of staging the shows.
So how does that translate in financial terms? According to Gilsenan, the Celtic Tenors earned about $1 million (€688 million) in turnover last year, which translated for the trio into a profit of about €300,000. This year, its top line will be about $725,000. "The bottom line will be about the same," he said.
The tenors are also now beginning to look to new income streams from merchandising and music publishing. To date, they have structured their business as a partnership but Gilsenan said they might become a limited company.
It wasn't always so rosy. A record deal with EMI didn't live up to expectations and they have parted company over the years with a few agents and managers. They were even hired to sing Ireland's Call at rugby internationals.
"We lived on a bus in America for about three years doing low-value shows in high schools," he said. "We were living the same year over and over again."
A new agent in the US and a different focus have helped turned things around for the trio, with the Celtic Tenors now playing bigger venues in the US, which accounts for about half their earnings.
They will play a number of concerts around Ireland in the run-up to Christmas, including one at St Patrick's Cathedral in Dublin. They have also landed a lucrative gig in Abu Dhabi this month, where they will sing for Ferrari and the racing team's guests at the Formula One Grand Prix.
It's a tough job, lads, but I guess somebody's got to do it.
Falling behind Iceland in fight for recovery, that's not funny
A YEAR ago it was said that the only difference between Ireland and Iceland was one letter and six months. It wasn't funny even then.
Last week, Deutsche Bank issued a report examining the differences in greater detail. In a nutshell, Deutsche decided that, a year on, Iceland is probably better placed for recovery than Ireland.
"Iceland's advantages over Ireland and other EMU member states should not be understated," Deutsche argued. "It has undergone a massive adjustment in competitiveness and a shift in resources from the non-tradeable to tradeable sector. It also enjoys natural resources, which it may opt to invest in to generate economic activity."
By contrast, Ireland's growth path is "more uncertain", the bank adds. "It can no longer compete on manufacturing, restoration of competitiveness via unit labour costs is set to be much more prolonged and the economy appears to lack a 'niche' to attract foreign direct investment. At this stage, our best guess is that Iceland supports the current literature on the benefit of devaluation to a recovery in economic output."
Then again, what does Deutsche know about Iceland and Ireland? Not much judging by the report's take on our historical ties.
"In the 10th century, Norse chiefs are known to have taken female slaves from Ireland to Iceland, helping to explain the similarities in appearances between Irish and Icelandic populations!"
Now that is funny.
Radio Nova keen to press ahead with 2010 launch
GIVEN THE decline in media advertising sales recently, another commercial radio station might be the last thing the Dublin market needs but the Radio Nova backers are determined to press ahead and launch the station in the second quarter of next year.
"That's the firm plan," Nova's Kevin Branigan told me earlier this week. "Preparations are already under way. We've agreed a transmission contract, we're close to deciding on our premises and we're talking to presenters."
Nova has also signed up its first employee. David Tighe has agreed to become its chief executive after seven years in the same role at Limerick's Live 95fm, which is owned by UTV. Tighe, who is on "gardening leave" until the beginning of January, will earn €120,000 as chief executive, according to Nova's application document to the Broadcasting Commission of Ireland.
Nova won the Dublin classic rock licence for over-25s from the BCI in September 2008 and had planned to be on air by this August. However, the recession and a steep decline in radio advertising forced a rethink.
"We felt it wasn't the right year [2009] to set up a radio station," Branigan explained.
Will 2010 be any better? "It's pretty hard to see how it can be any worse," Branigan said. "There seems to be a levelling out in [advertising] revenues."
Nova's shareholders include cinema operator Tom Anderson, and Barry O'Callaghan and Pat McDonagh, who worked together successfully at Irish e-learning group Riverdeep. Vienna Investments – whose backers include Dermot Hanrahan, Ulick McEvaddy and concert promoter Peter Aiken – also has a stake in the station.
Nova plans to invest €1.4 million in its first year, with €500,000 on marketing. It is targeting sales of €1.35 million in its first year, when the station is projected to make a loss of €1.54 million. While modest, these projections will be tested by the timing of a recovery in the economy.
Little Things
The choice of ex RTÉ director general Bob Collins as the chairman of the new Broadcasting Authority of Ireland has ruffled feathers. The authority has replaced the Broadcasting Commission of Ireland and will also regulate RTÉ. Willie O'Reilly, chair of the Independent Broadcasters of Ireland, expressed his "concern" about Collins's appointment by Minister for Communications Eamonn Ryan.
O'Reilly said Collins's association with the State broadcaster could lead to a perception that the BAI chairman's "loyalties will naturally be to RTÉ". Strong words.
"We will be seeking an immediate meeting with Bob Collins so that we can share our concerns," he added. Wouldn't you just love to be a fly on the wall for that meeting?
With the international business of Setanta Sports back in the hands of founders Leonard Ryan and Mickey O'Rourke, the pair are seeking to raise about €15 million from investors to move it forward.
Funding is most likely to come from the US. The business broadcasts in America, Canada and Australia and is separate from Setanta's Irish arm.
Finally, BCM Hanby Wallace told its 300 staff in the Westin Hotel last week that it will move in April to a head office in Grand Canal Square. The lease on its Harcourt Street office will go on the market next week.
