Irish Daily Mail Publisher Profits Plummet to €26,000
Pre-tax profits at the firm that publishes the Irish Daily Mail collapsed to a mere €26,000 last year, new accounts reveal, marking a staggering fall from the €1.46m recorded the previous year.
Write-Down Exposes Costly Gamble on Everymum
The chief factor behind the sharp drop at Associated Newspapers (Ireland) Ltd was an exceptional cost of €968,000. The company was forced to write down its investment in Eumedia Ltd, the firm behind Everymum, one of Ireland's leading parenting websites. The parenting platform was purchased from husband and wife team John Mullins and Gina Miltiadou of Bray-based Zahra Media for £2.2m (€2.55m) in October 2023, making the write-down a significant hit so soon after acquisition.
Before this exceptional cost, DMG Media Ireland had actually recorded a profit of €994,000 for the 12 months to the end of September. Revenues at the firm decreased by 4pc, falling from €16.47m to €15.78m, which the directors attributed to challenging newspaper and advertising markets.
Dividends and Director Pay Hold Firm as Jobs Are Cut
While profits plummeted and revenues shrank, the firm still paid out a dividend of €2.13m to its parent company. Pay to directors also remained steady at €748,000, comprising €699,000 in emoluments and €49,000 in pension contributions.
Meanwhile, the workforce bore the brunt of cost-saving measures. The number of people employed by the DMG Media Ireland group decreased from 129 to 125, with staff costs dipping marginally from €10.49m to €10.28m. The directors state that strong cost controls delivered 1pc in cost savings year-on-year, resulting in a positive operating profit of €1m, down 32pc on the previous year's €1.48m.
Post-Tax Loss and Sector Uncertainty
After incurring a corporation tax charge of €161,000, the company recorded a post-tax loss of €135,000. This stands in stark contrast to the previous year, when the firm enjoyed a post-tax profit of €3.79m after receiving a corporation tax credit of €2.33m. Shareholder funds totalled €4.4m at the end of September.
The directors acknowledged the risks facing the business, noting that influences include the level of competitor investment and the further decline of print media in favour of digital. They stated that these risks are mitigated by the company's financial security, long-standing reputation, and investment in digital services.
Broadening the Portfolio
Alongside the Irish Daily Mail, the company publishes Irish editions of The Mail on Sunday and Daily Mail Online, and operates websites including extra.ie and evoke.ie. In a post-balance sheet event, DMG Media Ireland purchased Waterford-based WLR FM from The Irish Times Media Group last December.
The wider Daily Mail and General Trust PLC group saw revenues decrease slightly to £1.09bn in the 12 months to the end of September, recording a pre-tax profit of £34.4m.