Losses of more than €2 million on investments in programmes such as Popstars and On Home Ground dented profits at RTÉ Commercial Enterprises Ltd (CEL) last year.
The national broadcaster's subsidiary, which until this year published the RTÉ Guide and handled the station's merchandising and online businesses, had operating profits of just over €5 million in the 12 months to December 31st, 2002. This compared to operating profits of €3.76 million in 2001.
The figures would have been even better, but the accounts show it charged €2.89 million against its 2002 results.
The notes to the accounts state that €2.04 million of this was a write-off of investments in programmes. The remaining €850,000 was related to the restructuring of RTÉ and its subsidiaries.
Yesterday, a spokeswoman said CEL invested in a number of Irish-made programmes, along with a number of independent producers.
These included the much-hyped reality TV talent hunt Popstars, and the GAA drama On Home Ground. The spokeswoman said it was not possible to say if this investment would ever be recouped.
"CEL invested in a number of projects with a view to creating merchandising opportunities and selling the programmes abroad," she said.
"It's not possible to say if the investment will be recouped; television is a very long process, and we have to invest in programmes."
In 2001, the company made a similar write-off of €1.8 million against its losses in Tara TV, a subscription-based cable service aimed at Irish people living abroad, which went into liquidation.
CEL's accounts, lodged this week with the Companies' Registration Office, show turnover fell by €4.6 million - from €27.3 million in 2001 to €22.7 million last year.
The fall in revenues was largely due to a €5.5 million plunge million in turnover on outside broadcast services from €7 million to €1.45. This element of the business was contracted out during the year as part of RTÉ overall restructuring. The move will save the broadcaster €3 million a year.
The company had pre-tax profits (including €381,000 interest income) of €2.5 million in 2002, a 21 per cent fall on the previous year's earnings of €3.2 million.
The balance sheet shows shareholders' funds at €29 million. RTÉ is the sole shareholder.
Along with the RTÉ Guide, CEL was the umbrella for a number of revenue centres. It was one of the original investors in Riverdance, and was said to have earned £14 million (€17.8 million) from this when the final residuals were paid in the first quarter of 2001.
RTÉ has transferred the subsidiary's operations to new business units established as part of the station's restructuring plan.
