Anindita Chatterjee
Updated on: October 16, 2024 1:50 pm GMT
In a remarkable turnaround, RTÉ’s commercial arm saw its profits double last year, reaching a record €11.44 million. This surge follows new digital distribution deals that have reinvigorated revenue streams.
Significant Growth in Revenue
This year, RTÉ Commercial Enterprises DAC reported a 106% increase in pre-tax profits. The profits rose from €5.54 million to €11.44 million. The revenue jumped 16%, climbing from €16.6 million to €19.28 million. Key points about their success include:
- Renewed digital distribution deals for shows, particularly through the RTÉ Player.
- Operating costs fell by 28%, dropping from €11.4 million to €8.2 million.
Impact of “Toy Show, The Musical”
A major factor in the reduction of costs was the absence of expenses linked to Toy Show, The Musical. In 2022, this production incurred losses of about €2.2 million due to significantly higher costs compared to the revenue it generated. In fact, it recorded about €496,000 against €2.69 million in costs.
Boost from GAA Go
RTÉ also benefited from its €381,000 profit share in the GAAGO joint venture with the GAA (Gaelic Athletic Association). This marked an 18% increase from the €323,000 earned the previous year. Overall revenues from GAAGO nearly doubled, rising from €2.4 million to €5.06 million. This venture has been integral to their financial success.
Other Revenue Streams
While some areas of revenue increased, others faced challenges:
- Radio Promotions and TV Programme Sales saw moderate revenue increases.
- Revenues for the RTÉ Guide and Special Live Events decreased.
- Programme Interaction Competitions (PIC) revenues remained flat, as audience engagement does not yet match pre-COVID levels.
Challenges Ahead
Despite overall growth, the RTÉ Guide reported a 7.6% decline in sales year on year, which mirrors a broader magazine market that has experienced an 8% drop. The flagship Christmas edition also saw a 6% decrease in sales, selling 225,355 copies compared to 240,600 in 2022.
Financial Health of RTÉ
The company’s total accrued profits now sit at €125 million, showing solid financial health. Cash funds increased from €1.9 million to €6.6 million over the year. The reduction in staff numbers by two, now totaling 25 employees, reflects a broader cost-cutting initiative. Additionally, payments to contractors dropped significantly from €638,000 to €97,000. Employee costs also decreased from €2.74 million to €2.1 million.
Looking Forward
As RTÉ continues to navigate the challenges of a changing media landscape, their strategic focus on digital distribution appears to be a winning strategy. Enhanced profit-sharing ventures like GAAGO and the scaling back of less successful programs, such as Toy Show, The Musical, have clearly shaped their current success.
For more information on RTÉ’s financial performance and future strategies, you can visit RTÉ Business News.
RTÉ’s business side is doing really well! They are improving their online services and cutting down on expenses to make more money in the future. Even though they still face some challenges with their income, it’s important for them to keep moving forward.
