Raidió Teilifís Éireann Annual Report & Group Financial Statements 2010
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ANNUAL REPORT & GROUP FINANCIAL STATEMENTS 2010 Title Raidió Teilifís Éireann Annual Report & Group Financial Statements 2010 1 RAIdIó TeilifíS Éireann Highlights 1 Board Members’ Report 52 Organisation Structure 2 Statement of Board Members’ Responsibilities 53 What We do 3 Independent Auditor’s Report 54 Chairman’s Statement 4 Financial Statements 55 director-General’s Review 6 Accounting Policies 62 Operational Review 10 Notes forming part of the Group Financial Statements 68 Financial Review 40 Other Reporting Requirements 99 Board at 31 december 2010 46 Other Statistical Information 105 RTÉ Executive 47 Financial History 109 Corporate Governance 48 Raidió Teilifís Éireann Board RTÉ’s mission is to: 50th Annual Report and Group Financial Statements for the 12 months ended 31 December 2010, presented to the Minister • Nurture and reflect the cultural and regional for Communications, Energy and Natural Resources pursuant to diversity of all the people of Ireland section 109 and 110 of the Broadcasting Act 2009. • Provide distinctive programming and services Is féidir leagan Gaeilge den Tuarascáil a íoslódáil ó of the highest quality and ambition, with the www.rte.ie/about/annualreport emphasis on home production • Inform the Irish public by delivering the best RTÉ’s vision is to grow the trust of the comprehensive independent news service possible people of Ireland as it informs, inspires, • Enable national participation in all major events reflects and enriches their lives. ANNUAL REPORT & GROUP FINANCIAL STATEMENTS 2010 Highlights RTÉ’s Annual Operating Cost Base Excluding Depreciation and Amortisation has been reduced by over €82 million / -19% since 2008. Tipperary’s dramatic victory over Kilkenny in 2010 was enjoyed free-to-air on RTÉ Television by the highest ever TV viewership for a hurling final, peaking at 1.24 million in the final minutes. As the country struggled with arctic conditions, freezing roads, airport and school closures at the beginning and end of the year people turned in huge numbers to RTÉ Television, RTÉ Radio and RTÉ.ie for information and assistance. To achieve a Net Deficit for 2010 of €4.7 million while maintaining and enhancing the quality of our services, increasing our audience and meeting our statutory obligations was a considerable achievement. By the end of 2010 the RTÉ News Now application for both iPhone and Android had been downloaded nearly 200,000 times. With a magical Willy Wonka themed opening sequence the 2010 Late Late Toy Show was the most-watched programme of the year with an astonishing 1.32 million viewers – 71.9% share of all those watching television in Ireland on the night. 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 2010 What We Do RTÉ operates two complementary free-to-air television channels: RTÉ provides independent, accurate and impartial news and • RTÉ One - the home of authoritative television news and current affairs programming, in both languages, across all current affairs coverage of national and international services, including Radio, Television and RTÉ.ie. 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 in broadband, mobile phone networks, the emergency services etc. RTÉ Radio operates four primary national stations and seven exclusively digital stations. Primary stations 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 Publishing operates five of Ireland’s leading media services: • RTÉ Radio 1 - with news and current-affairs; arts, drama and • RTÉ.ie - the most popular media website in Ireland offering a documentary strands; entertainment, sport and music range of free web based online services • RTÉ 2fm - talk and entertainment, popular and alternative music • RTÉ Guide - the best-selling Irish weekly magazine for the under-45s • RTÉ Aertel - the leading free-to-air teletext service • RTÉ lyric fm - a classical and specialist music channel • RTÉ Player - RTÉ’s Online TV catch up service • RTÉ Raidió na Gaeltachta - an Irish language service, similar in content to RTÉ Radio 1 but with special attention paid to • RTÉ News Now - RTÉ’s live/catch-up news service traditional music and local 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, and operates • RTÉ Junior - the first children’s radio station in Ireland; playing five performing groups: music and stories from 7 a.m. to 9 p.m. • RTÉ National Symphony Orchestra • RTÉ Chill - an ambient music service for the evenings • RTÉ Concert Orchestra • RTÉ Gold - uninterrupted popular music for the over-35s • RTÉ Vanbrugh Quartet • RTÉ Pulse - electronic dance music • RTÉ Philharmonic Choir • RTÉ Radio 1 Extra - a catch-up and split-content service for RTÉ • RTÉ Cór na nÓg Radio 1 3 RAIdIó TeilifíS Éireann Chairman’s Statement In reviewing 2010 the Board finds itself in a position where the public funding base of RTÉ’s operations has been put sharply in focus, to an unexpected degree. This must be a matter of concern, set against the challenges and achievements of the past two years. In 2009 the organisation was faced with a The Board is conscious of the severe and Stuart Switzer. These four members were grave challenge through the rapid decline continuing pressures on all parts of national chosen in the first public competition held in commercial revenues. The cost base was and public budgets and the obligation on all under the new legislation by the Oireachtas addressed swiftly and without disruption, public bodies to contribute proportionately Joint Committee on Communications, Energy bringing an anticipated revenue shortfall of to recovery and to burden-sharing. RTÉ has and Natural Resources. February also saw €68 million down to a Net deficit for the not shirked its duty in this regard. The issue the departure of Emer Finnan who had year of €16.5 million before an Exceptional for the Board and the organisation is that, served for the first six months of this Board Item (Restructuring charge). having managed the impact of the largest following a full term as a member of the commercial revenue fall-off experienced by final RTÉ Authority. I take this opportunity to This was followed in 2010 by a further, any similar broadcaster, RTÉ is now facing record my thanks and appreciation to Emer highly creditable organisational response further substantial impacts in its public for her dedicated service. resulting in a greatly reduced closing deficit funding. of less than €5 million. The Broadcasting Act 2009 introduced a If 2009 had brought a grave challenge number of new reporting requirements for This has been a remarkable turnaround, and 2010 appeared to have consolidated RTÉ, which were fulfilled as required during reflecting considerable management a managed stabilisation, the organisation 2010. By early spring, the Minister had application and overall organisational now moves into 2011 facing renewed received RTÉ’s Statement of Strategy 2010- discipline in very difficult times. RTÉ had uncertainties. 14, a key expression of the aims, principles reason to feel as 2010 drew to a close that and values that will shape this Board’s it has behaved creditably and achieved much. Returning to the year now being reported, tenure. In February, the Annual Statement the priority for the Board of RTÉ in 2010 of Performance Commitments for 2010 was The decisions announced in the was to steer the organisation through a drawn up and submitted to the Minister. The Government Budget in december 2010 series of uniquely difficult challenges facing Board then established the first statutory and in the accompanying four-year National all of its core activities – editorial, financial Audience Council and appointed an Recovery Plan are estimated to have and technological. advisory body for RTÉ Raidió na Gaeltachta. the effect of adding a further burden of In April, two further statutory requirements at least €15 million per year in reduced The problems of the national economy were met. These were the Report on public revenue and added costs. This is a dominated, reducing RTÉ’s public funding Television and Sound Broadcasting Services substantial negative development. It comes and this at the very time when the statutory to Irish Communities outside the island within 18 months of the passage of a major obligations of RTÉ were being increased. of Ireland and the preparation of the Irish Broadcasting Act which had expanded Showing considerable resolve, the staff Language Scheme for RTÉ, 2010-13. In RTÉ’s remit and reporting requirements and focused on sustaining service to the television July, the Board proposed to the Minister its imposed additional service obligations the licence payers and improving it wherever first Public Service Statement. direct full-year effect of which has been possible.