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Annual Report & Group Financial Statements Annual Report & Group Financial Statements 2013 53rd Raidió Teilifís Éireann Board 53rd Annual Report and Group Financial Statements for the 12 months ended 31 December 2013, presented to the Minister for Communications, Energy and Natural Resources pursuant to section 109 and 110 of the Broadcasting Act 2009. Is féidir leagan Gaeilge den Tuarascáil a íoslódáil ó www.rte.ie/about/ie/policies-and- reports/annual-reports/ CONTENTS Vision, Mission and Values 2 Highlights 3 What we Do 4 Organisation Structure 5 Chairman’s Statement 6 Director-General’s Review 8 Financial Review 12 Operational Review 22 Board 68 Executive 70 Corporate Governance 72 Board Members’ Report 77 Statement of Board Members’ Responsibilities 78 Independent Auditor’s Report 79 Financial Statements 80 Accounting Policies 87 Notes forming part of the Group Financial Statements 92 Other Reporting Requirements 127 Other Statistical Information 143 Financial History 144 1 RTÉ’S DIREctOR-GENERAL HAS SET RTÉ’S VISION, MIssION AND VALUES statEMENT VISION RTÉ’S VISION IS to ENRICH IRISH LIFE; to inform, entertain AND CHALLENGE; to connect WITH THE LIVES OF ALL THE PEOPLE. MIssION • Deliver the most trusteD, inDepenDent, irish NEWS SERVICE, accurate AND impartial, for THE connecteD age • ProviDe the broaDest range of value for money, quality content anD services for all ages, INTERESTS AND COMMUNITIES • Reflect irelanD’s cultural anD regional Diversity anD enable access to major events • Support anD nurture irish proDuction anD irish creatiVE talent VALUES • UnDerstanD our auDiences anD put them at the heart of everything we Do • be creative, innovative anD resourceful • be open, collaborative anD flexible • Be responsible, respectful, honest and accountable to one another anD to our auDiences 2 ANNUAL REPORT & GROUP FINANCIAL STATEMENTS 2013 HIGHLIGHTS break- even 19 of the top 20 programmes love hate rtÉ achieveD financial break- rtÉ television BROADCAST 19 love/hate premiereD in the uk EVEN IN 2013 AND GENERATED A OF THE TOP 20 MOST WatcHED ON CHANNEL 5 WITH A 5% SHARE. pre-tax surplus of over €1 PROGRAMMES IN IRELAND IN the series was broaDcast in MILLION 2013 asia, australia, brazil, israel, new zealanD, uk anD usa (on both netflix and HULU) prime 258 time 135m live unique page performances impressions and events DURING 2013 RTÉ ORCHESTRAS, PRIME TIME SAW THE RETURN RTÉ Digital SERVICES HAD QUARTET AND CHOIRS of high-profile investigative AN AVerage OF 135 MILLION performeD to ALMOST 200,000 REPORTS FROM RTÉ’S NEW UNIQUE page impressions PEOPLE, PRESENTING A total INVestigations UNIT, incluDING PER MONTH IN 2013 OF 258 LIVE performances ONE ON IRELANd’S CRÈCHES AND EVENTS 3 WHat WE DO RTÉ TELEVISION RTÉ RADIO RTÉ News and Current Affairs also RTÉ operates two core free-to-air RTÉ Radio operates four primary includes the Investigations Unit which television channels: national stations and seven exclusively produces high-profile investigative • RTÉ One HD - the most popular digital stations. Primary stations are reports. TV channel in Ireland, RTÉ One available on FM, on digital radio, on serves the wider population with Saorview and on the RTÉ Radio Player 2RN high-impact programming, landmark on mobile, tablet and desktop; digital 2rn provides transmission and drama, documentary, factual and stations are available on digital radio, distribution services to the multiplex entertainment programming, news on Saorview and on the RTÉ Radio operator and to radio broadcasters. and current affairs, bringing the Player on mobile, tablet and desktop. RTÉ provides carriage on the country together for key national RTÉ Radio 1 is also available on national DTT multiplex to television events. longwave. broadcasters. 2rn also rents tower space on its masts to local radio stations and • RTÉ Two HD - the home of sport and Primary Stations a range of telecommunications service children & young people’s daytime providers and operators. television, RTÉ Two provides • RTÉ Radio 1 - news and current affairs; arts, drama and documentary distinctive and relevant programming RTÉ DIGItaL for younger people through factual, strands; entertainment, sport and general and niche music. RTÉ Digital operates four of Ireland’s entertainment, comedy, sport, leading media services. documentary and acquired drama. • RTÉ 2fm - innovative programming, popular and alternative music, sport • RTÉ.ie - the most-popular media RTÉ operates three complementary and entertainment. website in Ireland, delivering RTÉ content to both Irish and TV channels on the Saorview platform. • RTÉ lyric fm - a unique alternative Those channels are as follows: international audiences through a listening choice for an audience of first-class user experience and multi- • RTÉjr - a dedicated daytime classical, world music and arts lovers. platform, multi-device availability. television service for children aged • RTÉ Raidió na Gaeltachta - a • RTÉ Player - Ireland’s leading on- under 7 years, which is completely national Irish language service that free of advertising. RTÉjr broadcasts demand television service, giving connects listeners to a personalised, audiences choice and control to enjoy pre-school programming between authentic Gaeltacht and Irish 7.00am and 6.45pm daily. With RTÉ programmes wherever and language world, with special whenever they choose. home-produced programmes as attention paid to local news and its cornerstone, RTÉjr’s schedule traditional music from Gaeltacht • RTÉ News Now - RTÉ’s live/catch-up allows children to access original, communities. news service, online, on mobile and entertaining and educational content on Saorview. which reflects their lives and is Digital Stations • RTÉ Aertel - the leading free-to-air made especially for them in a safe, • RTÉ 2XM - rock and pop for the teletext service. commercial-free zone. student generation with an emphasis • RTÉ One+1 - on-air from 7pm until on new and Irish material. RTÉ ORCHESTRAS, QUARTETS AND late. This channel offers viewers CHOIRS • RTÉ Radio 1 Extra - the best of another opportunity to experience RTÉ is a major contributor to the arts international public radio and RTÉ RTÉ One, one hour later. in Ireland, and operates five performing feature archives while offering a • RTÉ News Now - a rolling news groups which offer music lovers in catch-up and split-content service for Ireland high-quality live, broadcast and channel with live news bulletins, RTÉ Radio 1. live current affairs programmes, recorded music: • RTÉjr Radio - the only children’s catch-up on recent news and current • RTÉ National Symphony Orchestra radio station in Ireland, playing affairs, live coverage of special events, music and stories from 7am to 9pm. • RTÉ Concert Orchestra breaking news and continuous • RTÉ Vanbrugh Quartet/RTÉ sport, business and weather updates • RTÉ Gold - uninterrupted popular Contempo Quartet throughout the day. RTÉ News Now music for the over-35s. is also available online and as a • RTÉ Pulse - electronic dance music. • RTÉ Philharmonic Choir mobile service on iPhone, iPad and • RTÉ Cór na nÓg Android. RTÉ NEWS AND CURRENT AffaIRS RTÉ provides independent, accurate RTÉ GUIDE All RTÉ TV channels are available on and impartial news and current affairs • The best-selling Irish weekly listings Saorview. programming, in both languages, across and features magazine. all services, on radio, television, online and mobile. 4 ANNUAL REPORT & GROUP FINANCIAL STATEMENTS 2013 OrgaNIsatION STRUctURE RTÉ Board RTÉ Secretariat Internal Audit Director- General Legal The RTÉ Executive manages RTÉ’s Integrated Business Divisions (IBDs) and RTÉ Television MD the Group’s Shared Services on a day-to- Television day basis. The Director-General is an ex officio member of the Board of RTÉ, which RTÉ Radio is charged by the Irish Government with MD overseeing the activities of the RTÉ Group. Radio RTÉ Orchestras MD RTÉ Digital Digital MD RTÉ News and Current Affairs News and Current Affairs Chief Group Treasury Financial Officer Group Finance Group Commercial RTÉ Guide Director Technology Chief 2rn Technology Property and Services Officer Saorview Group HR MD Corporate Development Central Communications Public Affairs & Strategy RTÉ INTEGRATED BUSINESS DIVISIONS RTÉ EXECUTIVE RTÉ CENTRAL SHARED SERVICES 5 CHAIRMAn’S StatEMENT change, continuity anD rebuilDing: THAT WAS 2013 FOR RTÉ. THE CHALLENGING LOSS OF A LARGE NUMBER OF STAFF, anD DESPITE A COMMERCIAL CONSEQUENTLY, THEIR KNOWLEDge anD experience, TOOK PLACE ENVIRONMENT THat ALONGSIDE AN ENERGETIC REORGANISATION OF DIVISIONS, WITH REMAINED CHALLENGING, MANAGEMENT CHANGES IN TELEVISION AND RADIO, THE CREATION OF particularly in the early a new chilDren’s channel anD MULTI-meDIA INITIATIVES IN NEWS. part of the year, the After the difficult financial decisions Public funding is a critical part of organisation’S OVERALL and restructuring charges of the public service broadcasting. In July the previous year, 2013 was a year of Broadcasting Authority of Ireland (BAI) FINANCES IMPROVED. financial stabilisation for RTÉ. The published its five year review of the commercial environment remained funding of public broadcasting under challenging, particularly in the Section 124(8) of the Broadcasting Act. early part of the year; however the This report recommended an increased organisation’s overall finances level of funding for RTÉ over the five improved. At the end of 2013, RTÉ year period. It also recommended that reported an operating profit (EBITDA) part of such an increase should be spent of €20.7m, a substantial improvement
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