'Taken Down' and 'Operation Transformation' overseas sales help RTE commercial arm increase profits
Sales of RTE shows, ‘Taken Down’, ‘Hardy Bucks’ and ‘Operation Transformation’ last year contributed to RTE’s commercial arm increasing its pre-tax profits by 22% to €8.89m.
New accounts filed by RTE Commercial Enterprises DAC show that the slimmed-down division recorded the increase in pre-tax profits in spite of revenues decreasing by 9% from €20.26m to €18.47m.
The commercial division generates revenues from overseas sales of shows, sponsorship and sales of the RTE Guide and the profits it delivered last year were not enough to prevent the national broadcaster recording an overall loss of €13m for 2018.
Director General of RTE Dee Forbes said last month that RTE’s financial situation “is unlike anything it has seen before” and “it won’t be possible to continue as they are” with staff bracing themselves for the completion of a review into RTE’s operations.
According to the directors’ report for the commercial arm, overall revenues and costs reduced last year primarily due to the transfer of GAAGO activities into a separately established joint venture company.
The directors state that TV programmes had a strong performance with growth in drama content sales.
The report shows that it was a very successful year for RTE Drama and Comedy, with Stuart Carolan’s 'Taken Down' securing a significant distribution deal and a broadcast sale to ARTE France and Germany.
The report said that 'Hardy Bucks' was licensed to Netflix worldwide while 'The Clinic' - which helped launch the acting careers of Amy Huberman and Chris O’Dowd - was re-licensed to Acorn TV USA and UK.
The directors say the division’s Lifestyle division continues to deliver with Dermot Bannon’s 'Room To Improve' and Donal Skehan’s ‘Donal’s Meals in Minutes’ securing international sales across the UK, Europe and Australia as well as 'First Dates' and back catalogue Rachel Allen.
The directors also say that the Kathryn Thomas-presented 'Operation Transformation' was sold to SC4 in Wales.
The directors add that in line with the Press sector, the RTE Guide had a challenging year with a small decline year-on-year in revenues from advertising and circulation partly compensated by a cover price increase.
The directors say that the pre-tax profits for the year were significantly higher than the previous year as a moderate decrease in revenues was more than compensated for by a much larger reduction in costs.
Numbers employed by the firm last year reduced from 35 to 23 and staff costs reduced from €2.5m to €1.73m.
The accounts disclose that the GAAGO joint venture recorded revenues of €1.33m last year and recorded profits of €118,000.
Offering an insight into RTE’s commercial operation, the accounts show that the firm’s income from advertising and sponsorship reduced from €874,000 to €710,000.
The company’s revenues from ‘content, merchandising and related sales’ reduced from €13.3m to €12.17m while facilities income reduced from €2.6m to €2.3m.
The company’s circulation income reduced from €3.3m to to €3.19m.
On the firm's costs, they show that the print run for the RTE Guide totalled €1.29m for the year.
