Last year, the broadcaster RTÉ reported a net shortfall of €9.1 million due to a drop in licence fee revenues caused by a controversy over payments that embroiled the station. The annual accounts for the past year indicate a decline of €17.3 million in licence fee income as compared to the preceding year. Though an interim fund of €15 million partially compensated for this loss, it was already factored into RTÉ’s budgetary planning. The overall reduction in TV licence earnings as a result of this interim finance was €2.3 million.
The total income of the station, accounted by TV licence and commercial earnings, fell by €3.7 million. Commercial profits saw a dip of €1.4 million, while other TV trading proceeds such as sponsorship and product placement took a hit of 13.2%, as not all shows sponsored in 2022 retained their sponsorship in 2023.
Year-on-year operational expenses climbed by €9.3 million due to an elevated pay scheme and rising inflation. Costs linked to “special events” rose by €0.7 million, attributed to increased participation in events such as the Fifa Women’s World Cup, Rugby World Cup, European Qualifiers and the presence of the U.S. President Joe Biden in 2023.
The payroll costs surged by €9.8 million as a consequence of a pay arrangement made in 2022. RTÉ implemented a recruitment hold, postponed strategic initiatives, and ceased discretionary spending in an attempt to balance some of the licence fee shortfall. However, these measures were inadequate in compensating for the various other financial downfalls, leaving RTÉ at a reported deficit of €9.1 million by the close of 2023.
RTÉ’s board chair Terence O’Rourke stated that 2023 was a remarkably challenging and detrimental period for RTÉ. He further remarked that the accomplishments, both on-air and off-air, were eclipsed by the scandal that surfaced in June of that year, marking it an absolute low point for the organisation.
Reflecting on a demanding 2023, RTÉ’s published annual report highlights the significant transformational efforts underway within the corporation. The report comes in the wake of a multiannual investment allotment, made official by the government in July, which has propelled RTÉ towards an ambitious half-decade plan. Upholding uncompromising standards of corporate governance and transparency is a primary objective for the board, within this period of organisational evolution.
Notwithstanding the rigorous year, RTÉ’s director general, Kevin Bakhurst, expressed feelings of profound disappointment and regret, especially regarding the revelations that surfaced in June, severely undermining public trust in the broadcaster. He also voiced his appreciation for the unwavering commitment of RTÉ’s staff, who sustained audience engagement during these challenging times and his faith in RTÉ’s future, acknowledging its crucial role in Irish society.
The annual report warns of a sharp increase in RTÉ’s expenses for the year 2024, driven by inflation and the significant investment needed for digital initiatives aimed at adapting to an evolving media consumption scenario. It also reveals RTÉ’s €79 million in cash and liquid assets, offset by a group debt amounting to €59.5 million, including €52.5 million due by January 2026.
Troubles related to undisclosed payments to ex-leading presenter Ryan Tubridy have plagued RTÉ since the previous year, causing a dip in public and political trust, demonstrated by an unprecedented slump in TV license revenue. This crisis led to a multimillion Euro bailout from the Government to avert a possible financial collapse, further highlighting the pivotal governance oversights within RTÉ.