Newstalk 106, the Dublin current affairs station, expects to hold a third rights issue later this year.
Having struggled to make an impact in the capital's fiercely competitive local radio market since launching nine months ago, NewsTalk recently embarked on a €400,000 marketing campaign and, with monthly overheads estimated at €300,000, will require a fresh cash infusion before the end of 2003.
NewsTalk held a €2 million rights issue at Christmas and plans to raise a similar amount within the year, although it may delay until early 2004.
The station has garnered just 2 per cent of the listenership share in the latest JNLR survey - prompting management to abandon a "softly softly" marketing approach that relied on word-of-mouth reaction to build audiences.
NewsTalk, which employs 60 people, is owned by a consortium of media players, including Mr Denis O'Brien's Radio 2000, Dublin's FM104, Kilkenny Carlow Local Radio (KCLR) and sports broadcasting group Setanta.
Sources denied speculation of a rift between shareholders over the Christmas rights issue which followed a preliminary €1.6 million issue in early autumn.
Investors are veterans of the Irish radio industry and know it would take several years at least for NewsTalk to become self-sufficient, the source said.
Last month Lite FM, the adult-oriented Dublin station, became the latest independent to be acquired by an outside media group when UTV paid €14 million for it.
In September, Scottish Radio Holdings entered the capital's radio market, acquiring loss-making Country 106.8 for an undisclosed sum
Yesterday, NewsTalk chairman Mr John Purcell said the company was not in the market for a takeover and that shareholders were determined to back it over the medium term.
The latest JNLR survey shows FM104 and 98FM leading the Dublin local radio market, with 20 per cent audience share apiece.Life FM garnered a 12 per cent rating.
New youth station Spin103.8 posted a 3 per cent share while NewsTalk106 and County 106.8 had 2 per cent share of the Dublin market each.
