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CONNECTED Radio Telefís Éireann Annual Report and Group Financial Statements 2008

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CONNECTED Radio Telefís Éireann Annual Report and Group Financial Statements 2008 ANNUAL REPORT & GROUP FINANCIAL STATEMENTS 2008 CONNECTED Radio Telefís Éireann Annual Report and Group Financial Statements 2008 1 RADIO TELEFÍS ÉIREANN Contents bodyHighlights 1 Independent Auditor’s Report 37 Organisation Structure 2 Statement of Accounting Policies 38 What We Do 3 Group Income Statement 42 Chairman’s Statement 4 Group and RTÉ Statement of Director-General’s Review 5 Recognised Income and Expense 43 Operational Review 6 Group Balance Sheet 44 Financial Review 26 Group Cash Flow Statement 45 Authority at 31 December 2008 30 RTÉ Balance Sheet 46 Executive Board 31 RTÉ Cash Flow Statement 47 Corporate Governance 32 Notes forming part of the Group Authority Members’ Report 35 Financial Statements 48 Statement of Authority Members’ Charter 75 Responsibilities 36 Other Statistical Information 88 Financial History 91 Radio Telefís Éireann Authority Is féidir leagan Gaeilge den Tuarascáil a íoslódáil ó 48th Annual Report and Group Financial Statements for the www.rte.ie/about/annualreport.html 12 months ended 31 December 2008, presented to the Minister for Communications, Energy and Natural Resources pursuant to sections 25 and 26 of the Broadcasting Authority Act, 1960. 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 2 ANNUAL REPORT & GROUP FINANCIAL STATEMENTS 2008 Highlights 10 most watched TV programmes in Ireland were on RTÉ, nine of which were home produced 10 7 million most listened to Radio hits on RTÉ.ie during the programmes in Ireland Beijing Olympics were on RTÉ and all were home produced 498k was the viewing figure for the Prime Time Budget Special Break-even Deficit €86.6m result for 2008 on RTÉ Superannuation Scheme 1 RADIO TELEFÍS 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 reports directly to the RTÉ Authority, which is charged by the Irish Government with overseeing the activities of the RTÉ Group. 2 ANNUAL REPORT & GROUP FINANCIAL STATEMENTS 2008 What We Do RTÉ operates two complementary RTÉ operates four FM and six trial digital • RTÉ provides independent, accurate free-to-air television channels: radio stations: and impartial news and current affairs • RTÉ One - the home of authoritative • RTÉ Radio 1 - with news, information, programming, in both languages, across television news and current affairs feature strands, debate and sport all services, including Radio, Television and RTÉ.ie. coverage of national and international • RTÉ 2fm - talk and popular music for stories. A comprehensive range the under-35s of home-produced Irish factual, entertainment, drama and lifestyle • RTÉ lyric fm - a classical music and programming is complemented by arts channel selected acquired material. • RTÉ Raidió na Gaeltachta - an Irish • RTÉ Two - a mixed-genre channel language service, similar in content appealing to niche audiences across to RTÉ Radio 1 but with special the schedule. During daytime its attention paid to traditional music and primary focus is children and sports; local news in the various Gaeltacht in the evening it targets viewers of a communities young mindset with innovative drama, • RTÉ 2XM - rock and pop for the entertainment and key acquisitions. student generation with an emphasis on the new and the Irish • RTÉ Choice - the best of international public radio and RTÉ feature archives • RTÉ Junior/Chill - the first children’s radio station in Ireland; playing music and stories from 7 a.m. to 9 p.m. The channel is shared with RTÉ Chill, an ambient music service which broadcasts while Junior is off-air • RTÉ Gold - uninterrupted popular music for the over-35s • RTÉ Pulse - electronic Dance music • RTÉ Radio 1 Extra - a catch-up and split content service for RTÉ Radio 1 • RTÉNL (RTÉ Transmission Network RTÉ Publishing operates three of RTÉ is a major contributor to the arts in Limited) provides a national transmission Ireland’s leading media services: Ireland, and operates five performing network, for RTÉ Radio and Television, • RTÉ.ie - the most popular media groups: TG4, TV3 and Today FM. It also rents website offering a range of free web • RTÉ National Symphony Orchestra tower space on its masts to local radio based online services stations and a range of entities involved • RTÉ Concert Orchestra in broadband, mobile phone networks, • RTÉ Guide - the best-selling Irish • RTÉ Vanbrugh Quartet weekly magazine the emergency services etc. • RTÉ Philharmonic Choir • RTÉ Aertel - the leading free-to-air teletext service • RTÉ Cór na nÓg 3 RADIO TELEFÍS ÉIREANN Chairman’s Statement Mary Finan Chairman RTÉ’s Annual Report and Group Financial Statements 2008 is the final report of my term as Chairman of the RTÉ Authority. As we entered 2008 none of us foresaw the difficulties that lay ahead but I am pleased to report that, despite the economic downturn, RTÉ turned in a creditable performance with break even results. 2008 was a year of two parts for RTÉ service and the three commercial multiplexes “ Public Service from a revenue point of view. It started with and is committed to meeting its requirements strong performances across all commercial under the legislation. A decision has been Broadcasting is never operations but by year-end the global financial taken to seek major debt facilities to enable more important than crisis and the rapid slowdown of the domestic us to bring the project to fruition. economy had impacted negatively on RTÉ’s in an economically commercial revenue. This necessitated taking At the end of 2008 the eagerly awaited challenged environment.” some difficult decisions during 2008 resulting Broadcasting Bill reached its final stages in cutbacks, a pay freeze and careful pruning before its enactment by the Oireachtas which of the overall cost base, all of which was done is due in 2009. The Authority very much without affecting the quality of output. This welcomes the consolidation of broadcasting process will continue throughout 2009 and legislation and in particular the clarity around will be challenging for the incoming Authority, the roles, responsibilities and duties of the subsequent Board, management and staff. new RTÉ Board and the new Broadcasting Authority of Ireland (BAI). However, at a time The Government decided in 2002 that there when its largest revenue source, commercial would be annual reviews of the Television income, is under extreme pressure, RTÉ has Licence Fee. This happened from 2003 real concerns relating to the potential additional up to and including 2006 and in each year, funding burden being placed on it as a result based on independent assessments of RTÉ’s of the enactment of the Bill. If implemented performance, there was a modest increase. the additional financial impositions would cost This process slowed down in 2007 and 2008 RTÉ a minimum of €10 million per annum and with the result that RTÉ has not benefited would see further diversion of public funding to from a review in either year. A revised process the private sector. and a new timescale have now been agreed which should help to address some of the It has been a great honour for me to financial difficulties anticipated in 2009. serve as Chairman of the RTÉ Authority and I greatly appreciate the wholehearted Public Service Broadcasting is never more support I received from the members of the important than in an economically challenged Authority and from the Executive Board and environment. RTÉ has a duty to be accurate, management of RTÉ. I particularly enjoyed to explain and to challenge, even if at times working with so many truly talented and this is difficult for our audience, many of whom committed people across the organisation. are worried about their own futures. At times I have also gained a deeper understanding of like this there is widespread public interest in the importance of Public Service Broadcasting what is happening. RTÉ News and Current and despite the economic outlook and the very Affairs has played a central role in helping real commercial challenges ahead I believe people to better understand the tumultuous that RTÉ will continue to be an integral part of events affecting all our lives and has held Irish life and culture. I wish the organisation, significant audiences on Television, Radio and all its people and the incoming Board every Online. I am pleased to report that 2008 was success over the coming years. I would also a good year for RTÉ in terms of output and like to thank Minister Ryan and his officials that this was appreciated by the audience in the Department of Communications, as shown by the remarkably stable ratings in Energy and Natural Resources for their active such a highly competitive market. cooperation and interest during my term. One of the current challenges facing RTÉ Beir bua agus beannacht. is the smooth and timely migration to digital reception mechanisms for television. Important Mary Finan preparations for the launch of Ireland’s Digital Terrestrial Television (DTT) service were made during 2008. At the time of writing, RTÉ has begun upgrading and testing the technical transmission and distribution infrastructure required to broadcast both the single public 4 ANNUAL REPORT & GROUP FINANCIAL STATEMENTS 2008 Director-General’s Review Cathal Goan Director-General This Annual Report for 2008 reflects the RTÉ Radio continued to regain lost ground The BCI completed the competitive realities which face Irish Public Service and RTÉ Radio 1 consolidated its position process for the award of licences for three Broadcasting and Irish Society in general as as the meeting place for the national commercial Digital Terrestrial Television a result of the convulsions in economic life conversation, with a fifth consecutive multiplexes.
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