Latest accounts for the station, bought by UTV in early 2003 for €15m, show it had accumulated losses of €4.1m at the end of December 2005. No dividend was paid to UTV last year. The station’s balance sheet showed an excess of liabilities over assets of €1.8m. Ernst & Young, the company’s auditors, said this could require convening an extraordinary general meeting to comply with company law.
Sales at the station rose from €2.9m to more than €4.2m due to strong growth in advertising revenue. Its administrative expenses increased marginally to almost €4.3m. Commenting on the results, Ronan McManamy, chief executive of UTV’s radio assets in the republic and a director of Q102, said: “We’re trying to drive the station on towards profitability and are happy that it’s going in the right direction. This is a long-term game and you must remember Dublin is a competitive marketplace.”
McManamy declined to say if Q102, which has 45 staff, would record a profit in 2006, but stock market analysts have predicted it will at least achieve breakeven this year. McManamy said changes to its breakfast programming and evening schedule were expected to address “some concerns” about its output.
Data from JNLR, the listernship research body, for the 12 months to the end of September gave Q102 a 7.2% market share in Dublin. This was 0.3% down on the previous reporting period. Its “listened yesterday” figure was unchanged at 11%.
Q102 targets a 35-plus age group. UTV rebranded the station on its acquisition, dropping the Lite FM brand used for its launch in 2000.
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The station has four years left on its 10-year licence from the Broadcasting Commission of Ireland (BCI).
Q102’s performance is in contrast to the results produced by UTV’s highly profitable stations in Cork and Limerick. UTV is seeking to have its Limerick licence renewed. The BCI is expected to release its decision in January. In recently reported interim results, UTV said its operating profits at radio stations in the republic rose by 52% to £2.8m (€4.2m).