The company which publishes the Irish Daily Star newspaper increased its turnover in 2004 by 17 per cent, but higher costs associated with a new Sunday edition dented its operating profits.
Operating profits were down from €3 million to almost €2.9 million, a fall of about 3 per cent. However the company, Independent Star Limited, posted its highest turnover figure for many years, €39.3 million, up from €33.6 million the year before.
The paper and its Sunday version, the Star on Sunday, are owned by Independent News and Media (IN&M) and controversial paper baron, Richard Desmond, who owns Express Newspapers.
According to documents recently lodged with the Companies Office, the dividend paid out by Independent Star to IN&M and Express Newspapers increased to €2.1 million, up from €1.8 million in the year before. This represented an increase of 16.6 per cent.
While the company managed to cut sales costs, its operating expenses were up to €9.1 million from €7.6 million. It also incurred exceptional costs associated with the launch of the Star on Sunday of €1.2 million. "The exceptional costs during the year relate to exceptional set-up, promotional and other costs incurred in respect of the launch of the Irish Daily Star on Sunday. These costs include additional promotional, printing and other costs incurred," the accounts state.
According to the accounts, the paper now employs 101 staff at total cost, including social welfare and pension payments, of €6.6 million. Wages and salaries during the year under review were up to €5.7 million, from €4.4 million in the previous year.
According to the accounts, IN&M provides printing and distribution services worth €10.9 million to Independent Star. This was up about €600,000 on the previous year. Express Newspapers provided newsprint to the company worth €746,000.
Express Newspapers owns two national titles in the UK - the Daily Express and the Sunday Express. Mr Desmond bought Express Newspapers from Lord Hollick's United News & Media for £125 million in November 2000. However both titles have come under strong sales pressure from the Daily Mail group. Mr Desmond is a controversial figure in British publishing, mainly because of his long association with pornographic magazines, although he has sold these.
