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Radio Telefís Éireann Annual Report and Group Financial Statements 2007 Radio Telefís Éireann

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Radio Telefís Éireann Annual Report and Group Financial Statements 2007 Radio Telefís Éireann RADIO TELEFÍS ÉIREANN ANNUAL REPORT AND GROUP FINANCIAL STATEMENTS 2007 RADIO TELEFÍS ÉIREANN Contents Highlights 3 Independent Auditor’s Report 39 Organisation Structure 4 Statement of Accounting Policies 40 What we do 5 Group Income Statement 44 Chairman’s Statement 6 Group and RTÉ Statement of Total Director-General’s Review 7 Recognised Income and Expense 45 Operational Reviews 8 Group Balance Sheet 46 Financial Review 26 Group Cash Flow Statement 47 Authority 30 RTÉ Balance Sheet 48 Executive Board 32 RTÉ Cash Flow Statement 49 Corporate Governance 34 Notes to the Financial Statements 50 Authority Members’ Report 37 Charter 81 Statement of Authority Members’ Other Statistical Information 92 Responsibilities 38 Financial History 95 Radio Telefís Éireann Authority Forty-seventh Annual Report and Group Financial Statements for the 12 months ended 31 December 2007, 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 2007 Highlights Financial Highlights €195.7m €245.5m Licence revenue, Commercial revenue, an increase of 7.1% an increase of 10.5% Performance Highlights 9of the10 70k in Jan to 880k in Dec most watched TV programmes were on RTÉ and all nine were the increase during 2007 in the number of podcasts home produced downloaded from RTÉ.ie 4 new RTÉ Radio digital stations were launched new locations for RTÉ Nuacht during the year: RTÉ 2XM, RTÉ Gold, RTÉ Junior and 2 RTÉ Digital Radio News General Election Highlights 68% All 43 the number of voters in the General Election who had constituencies in the country had journalists reporting into RTÉ watched the Leaders’ Debate on RTÉ Television Radio during the General Election count 10m 789k hits on RTÉ.ie during the four days of the was the peak viewing figure for the RTÉ Nine O’Clock News on General Election and count the day of the General Election count 3 RADIO TELEFÍS ÉIREANN Organisation Structure RTÉ’s organisational structure is as follows: The RTÉ Executive manages RTÉ’s Integrated Business Divisions 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. 4 ANNUAL REPORT & GROUP FINANCIAL STATEMENTS 2007 What We Do RTÉ is Ireland’s Public Service Broadcaster. It is the distinctive leader in Irish media, providing comprehensive and cost-effective free-to-air television and radio services to the Irish public, in Irish and English, which are of the highest quality and are impartial in accordance with RTÉ’s statutory obligations. These services include: RTÉ operates two complementary free-to- RTÉ operates four radio stations: • RTÉ provides independent, accurate air television channels: • RTÉ Radio 1 - with news, information, and impartial news and current affairs • RTÉ One - the home of authoritative feature strands, debate and sport. programming, in both languages, across television news and current affairs all services, including radio, television • RTÉ 2fm - the national leader in talk and and RTÉ.ie. coverage of national and international popular music for the under-35s. stories. A comprehensive range of home- produced Irish factual, entertainment, • RTÉ lyric fm - a classical music and arts drama and lifestyle programming is channel. complemented by selected acquired • RTÉ Raidió na Gaeltachta - an Irish material. language service, similar in content to • RTÉ Two - a mixed-genre channel RTÉ Radio 1 but with special attention appealing to niche audiences across paid to traditional music and local news the schedule. During daytime its in the various Gaeltacht communities. primary focus is children and sports; in the evening it targets viewers of a young mindset with innovative drama, entertainment and key acquisitions. • RTÉNL - provides a national transmission RTÉ Publishing operates three of RTÉ is a major contributor to the arts in network, for RTÉ Radio and Television, Ireland’s leading media services: Ireland, and operates five performing TG4, TV3 and Today fm. It also rents • RTÉ Guide - the best-selling Irish groups: tower space on its masts to local radio weekly magazine. • RTÉ National Symphony Orchestra. stations and a range of entities involved in broadband, mobile phone networks, • RTÉ Aertel - the leading free-to-air • RTÉ Concert Orchestra. the emergency services etc. teletext service. • RTÉ Vanburgh Quartet. • RTÉ.ie - the most popular media • RTÉ Philharmonic Choir. website offering a range of free web based Online services. • RTÉ Cór na nÓg. 5 RADIO TELEFÍS ÉIREANN Chairman’s Statement Mary Finan Chairman 2007 was an extremely busy and challenging year for RTÉ at the end of which I am happy to report performance ahead of budget. Again, following an independent assessment commissioned by the Department of Communications, Energy and Natural Resources (DCENR), the Government approved an increase in the Licence Fee with effect from January 2008. General election years always provide a RTÉ, across all output, continued to focus “ RTÉ is now obliged particular set of challenges for Public Service very successfully on home-produced content. Broadcasters. As much as the election itself This had the dual benefit of consolidating to address the issues must be conducted fairly, it must also be audiences and commercial revenue. In of Digital Terrestrial seen and understood to be fair by both those the course of developing new content we seeking election and by those voting. Central occasionally address unpalatable stories that Television (DTT) and to RTÉ’s Vision of maintaining the trust of are in the public interest. One such story was broadcasting services to the people of Ireland is to provide news and the widespread abuse of cocaine in Ireland. current affairs that is impartial and fair. At Amongst the coverage the television series the Irish diaspora.” no time is this more important than during High Society was the subject of considerable national elections. media debate towards the end of 2007. I believe the issue was addressed in a serious, I am pleased to say that I believe RTÉ played its honest and fair manner by those responsible part in Election 2007 both during the campaign for the series. and after the votes had been cast, providing a forum for lively debate, fair reporting and Just as 2007 saw RTÉ take on new special programming. Overall RTÉ’s coverage, responsibilities it was also a year in which in two languages and across four different we relinquished a very significant one. On media platforms brought comprehensive and the 1st of April TG4 became a separate immediate live coverage to a national and statutory body, an independent public service worldwide audience via Television, Radio, broadcaster. This was an important milestone Internet, Aertel and SMS text alert service. It in Irish broadcasting and I would very much like was our most thorough and ambitious election to wish Peter Quinn, his board and all the staff coverage ever and I believe it lies at the heart at TG4 the best for the future. of what constitutes responsible Public Service Broadcasting. I would like to record my thanks Sadly, 2007 saw the passing of former RTÉ to all those involved. Authority Chairman, Patrick J. Wright. We are very much indebted to him for the courage Despite delays in the introduction of and leadership he showed in preparing RTÉ consolidated broadcasting legislation, 2007 to tackle the challenges we now face. I did see important legislative changes with the would like to record my sincere gratitude for passing of the Broadcasting Amendment the rich legacy he has left us and to extend Act, which will have a significant impact on condolences, on behalf of all at RTÉ, to his RTÉ. Under the Act which came into law in family, friends and colleagues. April 2007, RTÉ is now obliged to address the issues of Digital Terrestrial Television (DTT) and Finally, I would like to thank my colleagues broadcasting services to the Irish diaspora. on the Authority for their commitment and support, the staff of RTÉ whom I am very Since April considerable progress has been proud to represent and of course the viewers made in planning for the delivery of a cost and listeners who continue, despite a dramatic effective RTÉ service for the Irish diaspora. proliferation in choices, to retain a special loyalty A new and important departure for RTÉ this to our programmes and services. is likely to involve both traditional and new media technologies and I look forward to Given the levels of activity anticipated in 2008, developments in 2008. I look forward to the continued close working relationship and working with Minister Ryan and the officials open communication with officials of the in his department on this issue and I can Department of Communications, Energy and confidently say that RTÉ will continue to lead Natural Resources is vital. We are grateful to efforts in regard to the roll out of DTT in Ireland. Minister Eamon Ryan and his officials for that full engagement. Throughout 2007 RTÉ supported the ongoing DTT trials and in July co-hosted with the Mary Finan DCENR the launch by Minister Eamonn Ryan T.D. of the first live broadcast of an Irish event in High-Definition Television.
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