IRADIO, WHICH operates independent regional stations in the northwest and northeast of the State, plans to make 12 staff redundant and close its Galway studios in a move to save €1 million a year and reach profitability.
Management informed staff of its plans yesterday and intends to implement the cuts by the middle of April. As part of the restructuring, iRadio’s shareholders have agreed to invest another €1.5 million in the business.
The station’s biggest investor is Galway publican Noel Mannion, who owns 42.3 per cent of the business. The other major shareholder is Wilton Radio, led by Dan Healy.
IRadio operates i102-104 FM, which broadcasts to the west and northwest of the State and went on air in February 2008; and i105-107 FM, which holds a licence for the northeast and midlands and began broadcasting in November 2008. Both stations target 15- to 34-year-old listeners.
Five full-time staff and one part-time employee will leave each station. The cuts will affect administration and research/production.
IRadio also plans to consolidate its broadcasting activities at its Athlone studios. The stations will employ 42 full-time and eight part-time staff following the restructuring. The Broadcasting Authority of Ireland has approved the cost-cutting plan.
Speaking to The Irish Timesyesterday, iRadio chief executive Rena Maycock said the restructuring was necessary due to a "prolonged" weakness in advertising revenues. "The ad revenues from the agencies just haven't come through," she said.
Latest accounts show iRadio stations lost just under €2.6 million between them in 2008. They had accumulated losses of €4 million by the end of that year.
