THE TWO main operating companies of Setanta Sports in Ireland made combined losses of €7.7 million in 2009, the year the company’s main holding company in Britain was placed into receivership.
Accounts provided to The Irish Timesshow that Setanta Sports Channel Ireland Ltd, which is involved in the production of the two pay TV channels broadcast here, made a pre-tax loss of €6.4 million in 2009, down from €6.9 million a year earlier.
Its turnover halved to €18 million during the period, when it took an exceptional charge of €5.9 million due to intercompany loans being extinguished. The company closed the year with accumulated losses of €42.7 million.
Setanta Sports Channel Ireland Ltd employed an average of 85 staff in 2009, with total employee costs coming to €4.3 million.
Meanwhile, Setanta Transmissions Ltd made a pre-tax loss of €1.3 million in 2009 compared with a profit of €1.5 million in the previous 12 months. Its turnover increased by 9 per cent to €4.6 million. One benefit of the collapse of its parent company was the extinguishing of a €1.2 million intercompany loan that it owed.
Stripping out this gain meant the transmissions business operated at break even in 2009. The transmissions company employed an average of 46 staff in 2009 with total employee costs amounting to just more than €2 million.
Setanta’s chief executive Colin Morgan said the company was now trading at break even overall.
Advertising and subscription revenues had been under pressure in the recession.
“The market remains very difficult,” he said. “We’ve worked hard over the past 12 months to streamline the business. We’re at break even and its about pushing on from there now.”
Mr Morgan added that its rights to the Rugby World Cup in New Zealand had resulted in all its “inventory selling out”.
Setanta holds the rights to all RWC games in Ireland. It sold subsidiary rights to Ireland’s games and certain other matches to RTÉ to comply with legislation.
Setanta Sport Holdings Ltd, the parent company for the two Irish entities, was placed into receivership in June 2009 after overextending itself in purchasing premium sports rights for UK broadcast.
The following month, the Irish businesses were taken over by Denis Desmond’s Gaiety Investments and MLM Management, a vehicle controlled by Setanta founders Leonard Ryan, Michael O’Rourke and Mark O’Meara. It broadcasts two channels on UPC Ireland’s cable platform and Sky’s satellite services.
Setanta employs about 130 staff at its Dublin base.
