The Sunday Tribune has posted losses of €7 million for the 18 months to December 2004, with its chairman blaming the abundance of free CDs and other promotions in the market for the disappointing results.
The paper is carrying accumulated losses of €37.2 million, up from €30 million in the 12 months to June 30th, 2003. It posted turnover in the 18 months to December 2004 of €17.4 million, compared to €10.9 million in the 12 months to June 30th, 2003.
The accounts show that Independent News and Media (IN&M), a 29.9 per cent shareholder, advanced the paper approximately €5.8 million in loans in the period.
IN&M also provided printing and wholesaling services to the Tribune worth €8.4 million.
The company's chairman, Gordon Colleary, said the results were produced during a period of intense competition in the Sunday newspaper market.
"CDs, free books, free offers and more were the norm and we followed suit. The cost of doing so hit our bottom line in a very dramatic way giving us an operating loss of over €6 million."
Meanwhile, the paper has rejected a Labour Court recommendation that advised the paper to pay its staff the terms of Sustaining Progress.
Michael Roche, the paper's managing director, told the court this week that paying the wage increases would seriously push up costs at the paper.
The Irish secretary of the National Union of Journalists, Séamus Dooley, said this decision was very disappointing and the Dublin print group of unions would meet next week to consider the implications.
There was speculation last night that the matter would be referred to the National Implementation Body, an industrial relations forum set up under Sustaining Progress. If the company agrees to pay phase one of Sustaining Progress, staff could be in line for a 7 per cent pay increase.
In a letter to staff yesterday, Mr Roche warned that the paper could be facing tough times if costs were not kept under control.
Mr Roche is part of a new management at the paper along with Norin Hegarty, who was appointed editor earlier this year.
