3e records losses, but profit expected this year 21 February 2010By Samantha McCaughren
Irish television station 3e - formerly known as Channel 6 - racked up accumulated losses of more than €16 million by the end of 2008,th e year it was acquired by TV3.
Accounts filed for the station revealed that, during 2008,i t was taking in less than €50,000 a week on average, while operating costs were running at more than €147,000 a week. It had a pre-tax loss of €5 million for the year.
However, David McRedmond, chief executive of TV3, said that 3e had heavily reduced its operating losses in 2009 and would move into operating profit later this year.
‘‘Clearly, Channel 6 was not viable as a standalone station, as you can see from the accounts.
We’re proving now that it could be viable as a group, which is why we acquired it," he said.
TV3,which is owned by private equity house Doughty Hanson, took over 3e in July 2008, just over two years after it was launched by advertising veteran Pat Donnelly.
The accounts state that the original company behind the station, Kish Media, will not seek back its original investment of €14.5 million ‘‘unless there are sufficient funds available in Channel 6 to meet all of its other liabilities as they fall due’’.
Original shareholders in the station included ACT Venture Capital, Claret Capital, the Gowan Group car distributors and the Barry’s Tea family, as well as Donnelly.
McRedmond said that 3e had recorded a growing audience, but increasing revenue in line with that had been more difficult in the current environment.
‘‘In 2010,it will move into profit, not for the full year, but at a point in the year, it will start to become profitable. We knew it would take a year or two years to get it into profit and we’re on track for that to happen."
Accounts for Channel 6 broadcasting show that revenue at the station was €2.56 million in 2008,d own from €2.86 million in 2007. Operating expenses were trimmed slightly, from €7.8 million to €7.7 million.
The pre-tax loss for the year was €5 million, up from €4.8 million.
