State Broadcaster RTÉ has announced a deficit of €65 million for last year.
But RTÉ says it's on track to break even in 2013, because of large-scale restructuring.
Despite a drop in advertising revenues across the media sector, RTÉ had an operating profit of €2.2 million, but this was offset by the costs of the restructuring, including large scale redundancies.
Yesterday RTÉ lost one of its highest paid stars when broadcaster Pat Kenny announced he is moving to Newstalk.
Chiefs at Montrose say they're confident the substantial restructuring they've carried out will work to stabilise finances.
In the broadcaster's annual report for 2012, it details the €46 million cost of restructuring and claims to have cut operating costs by €18.4million through that process.
The operating cost base has been reduced by €104 million, or 24%, with further reductions targeted for 2013.
Almost 500 staff have left the organisation since 2008 a reduction of 21%, with 270 leaving in 2012 alone under RTÉ’s voluntary exit schemes.
Noel Curran, Director-General, RTÉ, said: “The restructuring undertaken in the last two years has been difficult but will now enable RTÉ to return to financial stability this year. Significant cost-cutting measures, including staff pay cuts, have been in train since 2008, but in 2012 RTÉ delivered its most radical cost-cutting measures to date with a substantial restructuring programme which has brought operating costs to a significantly lower level. That process has continued into 2013 and will see RTÉ’s cost base 30% lower than in 2008. Although the restructuring has contributed to the deficit for 2012, I remain confident, notwithstanding a very difficult market environment, that the changes we have implemented have stabilised the financial base of the organisation.
Tom Savage, Chairman of the RTÉ Board commented: “The extensive changes during 2012 have led to a smaller, restructured RTÉ, one that has begun the task of renewing itself to face the challenge of continuing and rapid change in the Irish media landscape.”
