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RADIO TELEFÍS ÉIREANN
Financial Review
Overall
RTÉ delivered a “break-even” result for
2008 generating a Net Surplus After Tax
of €0.03 million (2007 €26.4 million)
based on Revenues of €441 million
(2007: €441 million) and reflecting a rapid
decline in commercial revenues in the
second half of the year.
Interpretation Framework
The interpretation of RTÉ’s financial
performance is particularly affected by two
matters relating to the RTÉ Superannuation
Scheme (a contributory, funded, occupational,
defined benefit pension scheme trust
sponsored by RTÉ to which no new employee
members have been admitted since 1989):
1. Under International Financial Reporting
Standards (IFRS), the separate liabilities
of Defined Benefit pension scheme trusts
are reflected in the scheme sponsor’s
Financial Statements in a manner akin to
Debt (measured by reference to Corporate
Bond rates). In RTÉ’s case the Liabilities
of the RTÉ Superannuation Scheme are
over five times greater than the reported
Net Assets of RTÉ and the scale of this
imbalance has the potential to detract
from a meaningful understanding of
RTÉ’s underlying operational financial
performance. Accordingly the divisional
commentary below is based on the results
of the Group excluding the net defined
benefit pension related finance income
arising on the assets and liabilities within
the Scheme.
2. As at 31 December 2008 the actuaries
to the RTÉ Superannuation Scheme
have certified that it failed to meet the
“Minimum Funding Standard” (M.F.S.)
required by the Pensions Act, 1990. The
exact size of the deficit estimated by the
Actuaries varies daily and depends on the
differing measurement bases used:
M.F.S.
€84.2m
Long-Term Actuarial Funding €102.3m
IFRS Accounting Valuation €86.6m
The shape, duration and nature of the longterm
financial burden that rectification of
the deficit places on RTÉ (and on employee
members) under current legislation cannot
reasonably be fully identified until the
Trustees of the Scheme submit a funding
proposal and timetable for Pensions Board
approval which must done by June 2010.
This is currently under examination.
Divisional Results
The integrated business divisions (IBDs) and
HQ contributed to the annual result as follows:
2008 2007
€m €m
Television (17.28) 10.15
Radio 2.76 2.66
News and Current Affairs (2.75) (2.65)
Performing Groups 0.00 0.00
Network 6.11 5.52
Publishing (2.06) (0.98)
Corporate HQ (2.53) (4.34)
Consolidation Adjustments 0.60 3.04
Sub-Total (15.15) 13.40
Net Defined Benefit Pension
Related Finance Income 5.72 16.18
Income Tax 9.46 (3.15)
Surplus for the year 0.03 26.43
Commercial Revenue
Following a satisfactory start Commercial
Revenues dropped sharply in the 2 nd half of
the year with the onset of recession. Overall
in 2008 commercial revenues declined by
€5.6 million (2 1 ⁄4%):
€m
Television Advertising -7.8
Radio Advertising +1.1
Other areas +1.1
Year-on-Year movement -5.6
Commercial Revenue 2007 245.5
Commercial Revenue 2008 239.9
“ RTÉ delivered a
“break-even” result
for 2008.”
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