The new radio station aimed at 18- to 34-year-olds, Spin FM, has performed well in its first months of operation, but its ability to generate revenue has been somewhat disappointing, according to a report from the Broadcasting Commission of Ireland (BCI)

The station, owned by Mr Denis O'Brien, accountant Ossie Kilkenny and businessman Mr Michael Sherry, has suffered because of the downturn in the advertising market.

According to the report, the station's own management have expressed "some disappointment with revenue performance". But the report adds that this must be viewed in the light "of the downturn in advertising revenue generally within the independent sector".

Spin was reviewed by the BCI in January and the report was completed in February. It has been released under the Freedom of Information Act to The Irish Times.

To maintain their licence, stations must submit to BCI reviews from time to time.

The review looks at the station's financial performance and whether it is meeting the strict conditions laid down in the licence agreement.

The report is mainly positive towards Spin, complementing its management team on their "strong degree of confidence and enthusiasm" for the station which went on air last summer.

"The programme service is generally in line with the station's programme policy commitments to the BCI. The recent JNLR survey was encouraging in respect of the station's reach and market share figures. The station would hope however to build on its daytime audience which would be the main driver of revenue for the service," says the report.

The report says the station's management has reacted well to the downturn in revenue. "Financial controls at the station appeared to be tight with some adjustments to expenditure in line with the downturn in revenue".

The report reveals that Spin's own "in house tracking" has found that it is taking listeners from pirate stations, FM 104 and 98 FM. "Smaller numbers are tuning in from 2 FM," it says.

The report says the station gets it news and current affairs from Independent Network News, which provides material to commercial broadcasters all over the State.

"The station has been attempting to develop its news presentation in a manner that is different in delivery from other stations in the Dublin market. They have acknowledged that some work remains to be done in this regard."

In terms of salary the report reveals that three individuals are paid in excess of € 50,000: chief executive Ms Naomi Maguire, programme director Mr Liam Thompson and Mr Tom Wright, financial controller.

The report comments on the salary structure: "Salary levels, while somewhat below the Dublin market, would be in line with the independent sector generally."