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Raidió Teilifís Éireann Annual Report & Group Financial Statements 2011 Raidió Teilifís Éireann

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Raidió Teilifís Éireann Annual Report & Group Financial Statements 2011 Raidió Teilifís Éireann Raidió Teilifís ÉiReann annual RepoRT & GRoup financial sTaTemenTs 2011 Raidió TeilifíS Éireann Highlights 1 Organisation Structure 2 What We Do 3 Chairman’s Statement 4 Director-General’s Review 6 Operational Review 10 Financial Review 40 Board 46 Executive 48 Corporate Governance 50 Board Members’ Report 54 Statement of Board Members’ Responsibilities 55 Independent Auditor’s Report 56 Financial Statements 57 Accounting Policies 64 Notes forming part of the Group Financial Statements 68 Other Reporting Requirements 103 Other Statistical Information 116 Financial History 121 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 Raidió Teilifís Éireann Board 51st Annual Report and Group Financial Statements for the 12 months ended 31 December 2011, 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/annualreport ANNuAl REPORT & GROuP FINANCIAl STATEMENTS 2011 HiGHliGHTs Since 2008 RTÉ has reduced its operating costs by close to 20% or €86 million. RTÉ continues to be Ireland’s With quality home-produced leading provider of digital programming and the best content with the country’s acquired programming from most popular Irish owned overseas, RTÉ increased its live website, the most popular peak-time viewing share on on-demand video service RTÉ One to 30.9% in 2011. and a suite of mobile services. Having successfully built RTÉ Radio 1 was the most and financed the new digital listened to station in Ireland terrestrial television network, during 2011, maintaining RTÉ launched SAORVIEW, its weekday reach at 25% Ireland’s new free-to-air digital and with 17 of the top 20 television service, enhancing programmes nationally. In October RTÉ launched its and ensuring the future of free- new Radio Player available to-air television in Ireland. online and on iPhone, iPad and Android, followed by the launch of an iPad and iPhone version of the hugely successful RTÉ Player before the end of the year. 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. Publishing MD Digital Group Commercial Director Chief Technology Officer 2 ANNuAl REPORT & GROuP FINANCIAl STATEMENTS 2011 WHaT We do RTÉ Radio - Digital Stations • RTÉ 2XM - rock and pop for the student generation with an emphasis on new and Irish material • RTÉ Choice - the best of international public radio and RTÉ feature archives RTÉ operates two complementary free-to-air television channels: • RTÉ junior - the first children’s radio station in Ireland; playing music and stories from 7 am to 9 pm • RTÉ One - the most popular Tv channel in Ireland. It is the home of • RTÉ Chill - an ambient music service for the evenings authoritative Irish and international television news and current affairs. • RTÉ Gold - uninterrupted popular music for the over-35s The channel offers a comprehensive range of home-produced Irish • RTÉ Pulse - electronic dance music factual, drama, arts, entertainment and lifestyle programming and a • RTÉ Radio 1 Extra - a catch-up and split-content service for RTÉ selection of premium international acquired programming. Radio 1 • RTÉ Two - the home of Irish sport and children and young people’s daytime television. Its evening schedule offers a range of innovative drama, entertainment and acquisitions, targeted at viewers of a younger mindset. In May 2011, at the launch of SAORvIEW, RTÉ also went live with four new Tv channels on the SAORvIEW platform. Those channels are as follows: RTÉ provides independent, accurate and impartial news and current • RTÉ Two HD - a simulcast of RTÉ Two and broadcasts key affairs programming, in both languages, across all services, including programming from the RTÉ Two schedule in High Definition. Radio, Television and RTÉ.ie. • RTÉjr - a dedicated daytime television service for children aged 6 years and younger which is completely free of advertising. RTÉjr is on-air from 9 am to 6.30 pm on weekdays and 6 am to 12 pm on Saturdays and Sundays. Home produced programming is the cornerstone of the RTÉjr schedule, with live action programming and Irish animation featuring strongly. • RTÉ One+1 - on-air from 7 pm until late. This channel offers viewers another opportunity to experience the key offerings of RTÉ One, one RTÉNl (RTÉ Transmission Network limited) provides a national hour later. transmission network, for RTÉ Radio and Television, TG4, Tv3 and Today • RTÉ News Now - a rolling news channel with live news bulletins, live FM. It also rents tower space on its masts to local radio stations and a current affairs programmes, catch-up on recent news and current range of telecommunications service providers and operators. affairs, live coverage of special events, breaking news and continuous sport, business and weather updates throughout the day. RTÉ News Now is also available online and as a mobile service on iPhone, iPad and Android. RTÉ Publishing operates five of Ireland’s leading media services: • RTÉ.ie - the most popular media website in Ireland offering a range of free web based online services • RTÉ Guide - the best-selling Irish weekly magazine RTÉ Radio operates four primary national stations and seven exclusively • RTÉ Aertel - the leading free-to-air teletext service digital stations. Primary stations are available on FM, on digital radio • RTÉ Player – RTÉ’s online Tv catch up service (DAB) and RTÉ.ie; digital stations are available on digital radio and • RTÉ News Now – RTÉ’s live/catch-up news service online. RTÉ Radio 1 is also available on lW. Primary Stations • RTÉ Radio 1 - news and current affairs; arts, drama and documentary strands; entertainment, sport and music • RTÉ 2fm - talk and entertainment, popular and alternative music for the under-45s RTÉ is a major contributor to the arts in Ireland, and operates five • RTÉ lyric fm - a classical and specialist music channel performing groups: • RTÉ Raidió na Gaeltachta - an Irish language service, similar in content • RTÉ National Symphony Orchestra to RTÉ Radio 1 but with special attention paid to traditional music and • RTÉ Concert Orchestra local news in the various Gaeltacht communities • RTÉ vanbrugh quartet • RTÉ Philharmonic Choir • RTÉ Cór na nóg 3 Raidió TeilifíS Éireann cHaiRman’s sTaTemenT innovaTions and anniveRsaRies made 2011 a pivoTal yeaR foR RTÉ and the licence payeRs. Television maRked iTs 50 yeaRs of seRvice while Radio compleTed iTs 85th yeaR on aiR. the public enjoyed impRoved on-demand access To both media, thanks To the launcH of neW online playeRs. The launch of SAORvIEW in May gave Maintaining the highest editorial the country its first free-to-air digital standards is a prime value for RTÉ and THe launcH television service. SAORvIEW is owned for its investigative journalism, a genre of of SAORvieW and managed by RTÉ and its transmission production with an outstanding record. system was built by RTÉNl, our network One programme broadcast in 2011 in may Gave subsidiary company. Importantly it will gravely damaged that reputation, leading ensure that free-to-air reception of Irish to an action for defamation, a broadcast THe counTRy channels and services continues when apology, and a statutory investigation by the iTs fiRsT fRee- analogue television broadcasting ends in Broadcasting Authority of Ireland. I would October 2012. This landmark development like to reiterate our full and unreserved To-aiR diGiTal demonstrated RTÉ’s commitment to the apology to Fr. Kevin Reynolds for the Television Irish public by delivering digital television, defamatory information broadcast about on schedule and on budget, despite the him. The Board is determined to take all seRvice. financial difficulties affecting the country necessary steps to restore confidence in and the organisation. RTÉ’s investigative reporting. It is the most difficult form of journalism and serious risks Technical progress was accompanied attend it, as this experience shows. yet by memorable programming. A General this genre of programming is essential in a Election campaign, a change of democracy and we have confirmed its place Government, the visits of queen Elizabeth II among the editorial priorities proposed by and uS President Barack Obama, and the the Director-General. State Funeral of Dr. Garret FitzGerald– all came in rapid succession in the first half The Annual Reports for the last number of the year, followed by the Presidential of years have detailed RTÉ’s action in Election in the autumn. RTÉ’s broadcast response to the economic difficulties that and online coverage enabled greater public emerged in 2008. With the collapse of participation in these events of national commercial revenue and the erosion of importance. public funding, cost reduction became the watchword. The commercial outlook Our achievements were recognised remains challenging and the consequences internationally when RTÉ Radio was go to the very core of RTÉ’s remit. In 2011, awarded the distinction of Broadcaster of RTÉ’s commercial revenue continued to the year at the 2011 New york Festivals. contract. At €167 million, the total was This was the first time that an Irish down €8 million from 2010. Against this broadcasting service has been so honoured background, RTÉ is reporting a Net Deficit and, in addition, sixteen awards were of €16.8 million in 2011.
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