Dublin's NewsTalk 106 expects to turn its first profit at some point in 2006, according to a confidential document on the station's progress.
According to an annual progress review done by the Broadcasting Commission of Ireland (BCI), the station headed by Mr Dan Healy is starting to make financial progress, though it will not be able to recoup its accumulated losses within its current licence period. However, it suggests breakeven could even happen in 2005.
"The station will begin to trade profitably during 2006 but is unlikely to recover its carried forward losses period to the end of the current licence period," states the document, written by the BCI chief executive Mr Michael O'Keeffe.
NewsTalk was awarded a 10-year licence in 2000.
According to the last set of accounts filed for NewsTalk, the station had accumulated losses of €8 million at the end of 2003.
In the last two years the station has improved its listenership figures and revenue position.
However, the document notes that costs have also increased too.
It states: "The station is in a much healthier financial state than this time last year and is moving towards a real possibility of monthly break-even towards the end of 2005."
The document also notes the considerable involvement of Denis O'Brien in the station, via his firm Radio 2000 Ltd. "The continuing commitment of the majority shareholder Radio 2000 and the other two principal shareholders to fund the rights issues must be acknowledged."
It adds: "Programming commitments are being delivered and the station has also achieved critical acclaim while also increasing listenership. There are now 72 people employed, which is quite exceptional for a niche service, although undoubtedly essential in order to maintain the current programming commitments."
The report points out that NewsTalk has achieved its listenership targets, but "its cost base has also grown".
"Programming strategy appears to be focused on developing a personality driven schedule and this has occurred through the recruitment of presenters such as Sean Moncrieff and Eamon Dunphy, with possibly a further star on the way," notes the document
According to the BCI document, Denis O'Brien's Radio 2000 is the largest shareholder with almost 61 per cent of the equity. Hyper Trust Ltd, which is linked to CKR Radio has 18.5 per cent, while Setanta, the sports TV group, has 17.3 per cent.
