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Raidió Teilifís Éireann Annual Report & Group Financial Statements 2009

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Raidió Teilifís Éireann Annual Report & Group Financial Statements 2009 Raidió Teilifís Éireann Annual Report & Group Financial Statements 2009 RAIDIÓ TEILIFÍS ÉIREANN Contents Highlights 1 Board Members’ Report 50 Organisation Structure 2 Statement of Board Members’ Responsibilities 51 What we do 3 Independent Auditor’s Report 52 � Chairman’s Statement 4 Financial Statements 53 Director-General’s Review 6 Accounting Policies 60 Operational Review 10 Notes forming part of the Group Financial Statements 66 Financial Review 38 Charter 92 Board at 31 December 2009 44 Other Statistical Information 100 Executive 45 Financial History 103 Corporate Governance 46 �������������������� ���������������������������������������������� ���������������������������������������������������������� Raidió Teilifís Éireann Board ��������������������� 49th Annual Report and Group Financial Statements for the 12 ��������������� ������������������������������������� months ended 31 December 2009, presented to the Minister for Communications, Energy and Natural Resources pursuant to section 109 of the Broadcasting Act 2009. RTÉ’s vision is to grow the trust of the people ���������������������������������������������������� of Ireland as it informs, inspires, reflects and ���������������������������������� enriches their lives. ����������������������������������������������������� RTÉ’s mission is to: • Nurture and reflect the cultural and regional diversity of all the people of Ireland ���������������������������������������������� • Provide distinctive programming and services ������������������������������������������� of the highest quality and ambition, with the ������������������������������� emphasis on home production • Inform the Irish public by delivering the best comprehensive independent news service �������������� possible � ����������� ������������ • Enable national participation in all major events ��������������� Is féidir leagan Gaeilge den Tuarascáil a íoslódáil ó www.rte.ie/about/annualreport ����������������������������� ����������� �������������������������� ���������������������������������������������� � � ������������������������������ ����������������������� ����������������� ������������� ������������������������� ������� Highlights ANNUAL REPORT & GROUP FINANCIAL STATEMENTS 200 9 � �������������������� ���������������������������������������������� ���������������������������������������������������������� ��������������������� ������������������������������������� ��������������� ���������������������������������������������������� ���������������������������������� ����������������������������������������������������� ���������������������������������������������� ������������������������������������������� ������������������������������� � �������������� ����������� ������������ ��������������� ����������������������������� ����������� �������������������������� ���������������������������������������������� � ������������������������������� ���������������������������������������� �������������������������������������� * before an Exceptional Item (Restructuring charge) of ������� €11.3 million. 1 RAIDIÓ TEILIFÍS ÉIREANN Organisation Structure RTÉ’s organisational structure is as follows: The RTÉ Executive manages RTÉ’s Integrated Business Divisions (IBDs) and the Group’s Shared Services on a day-to-day basis. The Director-General is an ex officio member of the Board of RTÉ, which is charged by the Irish Government with overseeing the activities of the RTÉ Group. 2 ANNUAL REPORT & GROUP FINANCIAL STATEMENTS 2009 What We Do RTÉ operates two complementary free-to-air RTÉ provides independent, accurate and impartial television channels: news and current affairs programming, in both • RTÉ One - the home of authoritative television languages, across all services, including Radio, news and current affairs coverage of national and Television and RTÉ.ie. international stories. A comprehensive range of home-produced Irish factual, entertainment, drama and lifestyle programming is complemented by selected acquired material. • RTÉ Two - a mixed-genre channel appealing to niche audiences across the schedule. During daytime its primary focus is children and sports; in the evening it targets viewers of a young mindset with innovative drama, entertainment and key acquisitions. RTÉNL (RTÉ Transmission Network Limited) provides a national transmission network, for RTÉ Radio and Television, TG4, TV3 and Today FM. It also rents tower space on its masts to local radio stations and a range of entities involved RTÉ Radio operates four primary national stations and in broadband, mobile phone networks, the seven exclusively digital stations. Primary stations emergency services, etc. are available on FM, on digital radio (DAB) and online; digital stations are available on digital radio and online. RTÉ Radio 1 is also available on LW. Primary Stations • RTÉ Radio 1 - with news and current-affairs; arts, drama and documentary strands; entertainment, sport and music RTÉ Publishing operates four of Ireland’s leading • RTÉ 2fm - talk and entertainment, popular and media services: alternative music for the under-45s • RTÉ.ie - the most popular media website in Ireland • RTÉ lyric fm - a classical and specialist music offering a range of free web based online services channel • RTÉ Guide - the best-selling Irish weekly • RTÉ Raidió na Gaeltachta - an Irish language magazine service, similar in content to RTÉ Radio 1 but with • RTÉ Aertel - the leading free-to-air teletext service special attention paid to traditional music and local • RTÉ Player - RTÉ’s Online TV catch up service news in the various Gaeltacht communities Digital Stations • RTÉ 2XM - rock and pop for the student generation with an emphasis on the new and the Irish • RTÉ Choice - the best of international public radio and RTÉ feature archives RTÉ is a major contributor to the arts in Ireland, • RTÉ Junior - the first children’s radio station in and operates five performing groups: Ireland; playing music and stories from 7 a.m. to 9 • RTÉ National Symphony Orchestra p.m. • RTÉ Concert Orchestra • RTÉ Chill - an ambient music service for the evenings • RTÉ Vanbrugh Quartet • RTÉ Gold - uninterrupted popular music for the • RTÉ Philharmonic Choir over-35s • RTÉ Cór na nÓg • RTÉ Pulse - electronic dance music • RTÉ Radio 1 Extra - a catch-up and split-content service for RTÉ Radio 1 3 RAIDIÓ TEILIFÍS ÉIREANN Chairman’s Statement The effect during 2009 of the global and domestic economic crisis on Ireland, a small open economy, was profound. Unemployment rose sharply, businesses struggled to survive and the Government was forced into making difficult choices. Anger, frustration and recrimination dominated politics and public discourse through the year as many with much to lose felt desperately vulnerable and feared their ambitions for themselves and their families had been severely undermined. Within this context RTÉ became a central As part of the savings achieved I am forum for debate and discussion throughout proud to report that RTÉ, in July 2009, the year. Public service media play an became the first public body to agree and important role in difficult and uncertain times. implement reductions in basic salary for all During 2009 the trust that RTÉ has earned staff. In doing so our staff demonstrated a with its audience over many years became clear understanding and awareness of the critical as people tuned to our services in difficulties facing not only the organisation growing numbers to try to make sense of the in which they work but faced by many of our turbulent events shaping their lives. audience too. As a dual funded broadcaster reliant on It is this understanding of our audience that commercial and licence fee income, RTÉ has enabled RTÉ, against a difficult financial also faced a turbulent year. By a combination backdrop, to continue through 2009 to of adverse domestic economic pressures innovate and put on air, on screen and online together with the collateral impact of the the best programming and content. For deepest global recession in decades all example 2009 saw: the launch of an entirely advertising spending, especially television new online platform, the RTÉ Player; the advertising, was significantly reduced during renewal of the longest running TV talk show 2009. As a result and as this report details, in the world; the provision of an entirely new RTÉ suffered a major decline in its commercial forum for current affairs debate on Monday revenue. This in turn required decisive and nights; and - each quarter – rising RTÉ difficult action by the Board and the Executive Radio listenership figures. At a time when to reduce costs and protect revenues, while competition has never been greater and at the same time fulfilling our statutory resources are reduced, increased productivity, obligations, protecting our schedules and creativity and resourcefulness were required maintaining employment as best we could. from all staff to continue to fulfil our public Through a range of measures RTÉ turned purpose and deliver for our audience. It says a a large predicted potential shortfall into a lot about an organisation that staff who have manageable operating deficit for the year. endured painful adjustments in pay, budget This was a considerable achievement. cutbacks and the disruption caused by staff departures, continue to put the public first. Statement 4 ANNUAL REPORT & GROUP FINANCIAL STATEMENTS 2009 Through a range of measures RTÉ turned a large predicted potential shortfall into to a manageable operating deficit for the year. This was a considerable achievement.
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