RTÉ Annual Report for 2023 has confirmed a net deficit of €9.1m for the national broadcaster that named a decline in the TV Licence revenue, increase in operating costs, and the broadcast of several special events as contributing factors to a “challenging year for the organisation”.
The Annual Report and Group Consolidated Financial Statements for the Year Ended 31st December 2023, was released publicly following it presentation to the Houses of The Oireachtas yesterday evening.
In terms of total revenue, the revenue from TV Licence/Commercial decreased by €3.7m between 2023 and 2022 (€344.0 million in 2023 vs €347.7 million in 2022).
The Licence fee income received by RTÉ in 2023 was down €17.3 million compared to 2022, as TV licence sales were negatively impacted by the RTÉ payments controversy. While this decline was somewhat offset by the additional €15m of interim funding, this additional funding was already allocated in RTÉs 2023 plans. This interim funding means that TV Licence revenue declined by €2.3 million (€193.3 million vs €195.6 million).
The Commercial revenue of €150.7 million in 2023 represented a year-on-year decrease of 0.9% (2022: €152.1 million). The main reason for this was the decline in Television Trading offset by Other Non-Trading revenues as RTÉ continues to diversify its revenues.
The Operating costs, excluding Special Events, increased by €9.3 million year-on-year (€341.9 million in 2023 vs €332.6 million in 2022) as the 2022 pay agreement with the TUG took effect and the Irish economy entered a high inflation environment. RTÉ also provided for additional amounts relating to the on-going investigation by the Department of Social Protection into the PRSI status of contractors.
The Special Events costs increased in 2023 by €0.7 million (€7.4 million in 2023 vs €6.7 million ion 2022) due to increased activity as the FIFA Women’s World Cup, Rugby World Cup, European Qualifiers, and the visit of US President Joe Biden occurred in 2023 vs the FIFA World Cup and UEFA Nations League in 2022.
In terms of Personnel-Related costs, this increased by €9.8 million due to the Pay Agreement reached in November 2022, the increase in the contractor provision and pay increments awarded. These were offset by the hiring freeze announced in response to the decline in licence fee sales. Following a significant increase in energy costs in 2022, 2023 saw a €1 million drop in energy costs as the wholesale market price declined across 2023.
For the first time, and in line with the previous commitment towards greater Transparency from RTE Director-General, Kevin Bakhurst, RTÉ has published in its annual report the earnings of its ten highest-paid on air presenters for the year, as well as remuneration details of the permanent members of its Leadership Team.
Total cash balances, including liquid investments, on 31 December 2023 amounted to €78.7 million (2022: €114.0 million). This represents a decrease of €35.4 million and was primarily due to the decline in the level of licence fee sales following the RTÉ payments controversy along with negative working capital movements during the year.
Ultimately, this means that the Net Deficit after tax and Exceptional Items for the year was €9.1m (- €2.8m in 2022).
Chair of the Board of RTE, Terence O’Rourke, said: “While the publication of this report is an opportunity to reflect on the challenging year that 2023 was for RTÉ, we are very much focused on the important work now well underway to transform the organisation. With the support of the multi- annual funding commitment announced by Government in July, RTÉ is moving forward with an ambitious new five-year strategy. The Board is dedicated to ensuring that this work is underpinned by the highest standards of corporate governance and transparency.”
Director-General of RTÉ, Kevin Bakhurst said: “2023 was a difficult year for all of us in RTÉ and for the many who had placed their trust in us. In response, through wide-ranging and significant reforms, I, along with my leadership team and the Board of RTÉ, have faced the key issues head on and been committed to delivering the transformation RTÉ needs to rebuild trust and restore confidence, both internally and externally. Through an unprecedented reform agenda, we have delivered greater transparency, rigour in our decision-making and more financial discipline, while focusing on the future and fulfilling our ambition for RTÉ. We are grateful to all those who have paid their TV Licence during this period.
“As I have said many times, one of my biggest sources of frustration when I look back on last year is that the hard work and dedication of our staff and partners in the creative sector and their many achievements on air, on screen and online, and elsewhere, were overshadowed by the revelations. I believe this is changing following a year in which our focus on serving our audience has seen RTÉ deliver incredible live sport, vital investigative journalism, important news and analysis, engaging discussion and debate, great original Irish drama and entertainment, wonderful live music and performances, excellent factual programming, and so much more, in English and in Irish.
“While we remain committed to addressing key issues, through the delivery of our five-year strategy, we are excited about what the future can be for RTÉ. We are thankful for the multi-annual government funding which will enable us to plan ahead and to achieve our vision to evolve RTÉ into an organisation that is relevant and cherished, that brings the country together for important national moments and events, that produces important and engaging public service programmes and content, that delivers value for money, and is trusted again. I and my team are committed to the work required to make that happen.”
Click here to access RTÉ’s 2023 Annual Report in full.
