The struggling Dublin talk radio station NewsTalk 106 has suffered two further setbacks, with a local radio station selling its stake and one of its leading presenters leaving the station.
WLR FM has sold its 2.6 per cent stake for an undisclosed sum to two of the remaining shareholders, Radio 2000, controlled by Mr Denis O'Brien, and Kilkenny Carlow local radio.
In a separate development, Mr Daire O'Brien, one of the station's most high-profile presenters, has left to pursue other interests.
WLR FM said it sold its stake because it had other priorities, particularly its stake in the southeast regional station Beat FM, which is due to come on air in the summer.
WLR managing director Mr Des Whelan said the decision to sell did not represent a vote of no confidence for NewsTalk and he believed the station would ultimately be a major success.
He said WLR was investing € 4 million in a new studio complex in Waterford and this was its priority. "We have enough on our plate right now," he said.
The biggest shareholder in NewsTalk is Radio 2000 Ltd, controlled by Denis O'Brien. Setanta Media Holdings is the next biggest shareholder. Setanta is a broadcasting company that supplies some of the sports programming for NewsTalk.
Capital Radio Productions, which owns FM 104, owns 12.5 per cent, the next largest stake. It declined to take part in a fresh round of funding earlier this year, and its stake was subsequently diluted.
According to a review of NewsTalk conducted by the Broadcasting Commission of Ireland (BCI) a few months ago, the station's ratio of income to expenditure was not sustainable. However, the station said yesterday its cost base was under control.
The BCI review also revealed the wage structure in NewsTalk. It shows that salaries for presenters range between €24,000 and €102,000. The latter salary is understood to be paid to presenter Mr David McWilliams.
NewsTalk has experienced major difficulties reaching a sizeable audience since it went on air last April. The last set of JNLR figures gave the station an effective market share of zero in the Dublin area. Attention now turns to April 29th when an interim set of JNLR figures is released. If the station does not perform well in these, it could mean further financial problems.
The station's chief executive, Mr Aidan Dunne, said its key morning show, the Flip Side, was being changed and two new presenters, Ms Orla Barry and Mr Declan Carty, would be presenting a new programme from next week. It is understood Mr O'Brien is to concentrate on writing and journalism.
His departure from the station is a considerable setback because the station used Mr O'Brien and two other presenters as central players in its aggressive post-Christmas marketing campaign. The head of sales, Mr Diarmuid O'Leary, has also departed the station and has yet to be replaced.
