Radio group’s drop in earnings blamed on shift to digital

THE radio group which operates FM104 in Dublin has blamed a 2pc drop in revenue to €22.2m on a very challenging commercial environment with the continued migration of revenue to unregulated digital operators.

New accounts filed by the Rupert Murdoch-owned Wireless Group, which also owns Limerick’s Live 95, Cork’s 96FM and Q102 in Dublin, show earnings at the group decreased by 22.6pc to €2.7m in the 12 months to the end of last June 30.

The business’s earnings before interest tax depreciation and amortisation (ebitda) of €2.7m compared to €3.49m for the previous 12 months.

The group also owns LMFM in Co Louth and Co Meath and C103 in Cork.

Wireless Radio (ROI) last year recorded pre-tax losses of €2.9m, a 33pc increase on the €2.2m pre-tax loss in 2018.

The company recorded a post-tax loss of €771,000 last year after recording a corporation tax credit of €1.63m.

In their report, the directors blamed the decline in revenue due to the “very challenging commercial environment with the continued migration of revenue to unregulated digital operators”.

The said: “The radio market remains in decline, however industry initiatives such as Choose Radio are welcome developments in promoting the positive virtues of the sector.”

The directors said higher costs resulted in the lower ebitda and larger loss in the year. The higher costs were as a result of investment in digital technologies and launching new streams and podcasts to broaden the business’s listenership base.

They added that 880,000 tune into Wireless Group stations and market share has increased from 12pc to 13.8pc.

In terms of individual stations, they said FM104 and Q102 now rank first and second commercial stations in Dublin with a combined market share of 18.7pc.

Numbers employed by the group last year increased from 240 to 258, with staff costs rising from €11.25m to €12m.

Directors’ pay dropped sharply during the year from €1.1m to €694,000.

The group’s combined noncash depreciation and amortisation costs last year totalled €5.7m.

At the end of last June, the group’s had a shareholders’ deficit of €1.2m. This was made up of accumulated losses of €44.96m, offset by share capital of €43.56m. The group’s cash reduced to €4.1m.

‘Radio market in decline, but initiatives welcome’