The Irish Times Group has reported a loss for the 2022 financial year, citing increasing costs of energy and newsprint. Over the course of the year, the group’s turnover increased by 2 per cent to €109.7 million.
However, the company has posted a loss of €1.1 million compared to a profit of €2.9 million in 2021.
This is before other exceptional items and other losses are taken into account. These included €1.15 million related to termination payments made to former executive directors who left in 2022.
Losses in investments came to €2.7 million. These, along with rising energy and printing cost, means that total losses last year for the Group came to over €5 million.
According to the results, additional expenditure for the year came to €4.7 million, due mainly to increasing energy unit costs as well as the cost of printing newspapers.
The company’s investment in core technology and a modest increase in headcount resulted in total spend rising by €6.2 million compared to 2021.
The group owns The Irish Times, the Irish Examiner, Breakingnews.ie, property website MyHome.ie, recruitment website Recruitireland.com, and a group of regional titles along with holding a majority share in two radio licences, wlrfm and beat102103fm.
Group turnover was boosted by a 10 per cent rise in digital subscriptions, a 5 per cent rise in advertising and a 12 per cent increase in third-party printing contracts.
Print circulation revenues declined by 6 per cent last year, although this represented a better performance than the market overall, which showed a drop of 10 per cent.
Deirdre Veldon, managing director of the Irish Times Group, said following a cost review conducted earlier this year “we are finalising a range of measures to manage our costs effectively, including the introduction of a voluntary parting programme”.
“Energy and newsprint prices remain stubbornly high. The reduction in Vat on print and digital subscription revenues in 2023 is a very welcome boost against continuing inflationary pressures,” the group said in its results.
Ms Veldon said that the Group’s revenues were back up to 2019 levels in 2022 “thanks to growth in our digital subscriptions, advertising and increased revenues from printing contracts for other publishers”.
“That increase is the result of the hard work, creativity and commitment of all our staff. That said, we experienced a major increase in costs, particularly those we can’t control, including electricity and costs associated with printing our publications.”
Print circulation across the entire group fell by 6% in the year. However, this was ahead of the market volume declines of 10%.
The group’s net cash at the year end remains strong at €19.7 million — down from €23.7 million last year.
While the group’s investment portfolio reported losses of €2.7m in the year, the Group said this performance was ahead of the market which experienced a very challenging and volatile year.
The group said losses were “hedged somewhat” by tactical investment in “US dollar held equities throughout the year”.
“Our strategy remains to build a digitally focused news and information business, anchored in the Objects of The Irish Times Trust, which has subscribers, readers and listeners at its core and where paid content is the primary source of revenue,” the group said.
