RTÉ makes overspending of 4.4 million euros despite the goal of reducing costs

RTÉ spent over €4.3m more on staff and contractors last year compared to 2020, despite management pushing to reduce its payroll and other costs by €60m over three years.

According to its 2021 annual report, the state broadcaster paid €177.05 million in “staff-related operating costs” last year, compared to €172.7 million in 2020. This is despite calls from RTÉ Director General Dee Forbes to increase operating costs by 1 EUR to lower 60m between 2020 and 2023.

Contractor salaries and “other staff costs” totaled 27.3 million euros last year compared to 22.9 million euros in 2020, while staff costs increased to 149.7 million euros in both 2021 and 2020 for a total of 1,871 full-time , part-time and temporary staff as of December 31, 2021 and 1,866 employees in 2020.

RTÉ also paid €1.8 million in staff travel and subsistence expenses in 2021, compared to €1.7 million in 2020.

Personnel costs were included in the total costs of 331.3 million euros paid by the channel in total operating expenses in 2021, an increase of 23.6 million euros compared to these costs in 2020.

However, RTÉ noted that production costs increased in 2021 “as content production resumed after severe disruptions in 2020 due to the pandemic”.

The cost of broadcasting special events last year, including Euro 2020, the Olympic Games and World Cup qualifiers, was €15.8 million.

RTÉ added that the number of people who bought TV licenses last year fell significantly compared to 2020, resulting in a loss of €500,000 in revenue from last year.

However, the total revenue RTÉ generated from both its television license fees and advertising fees increased by €13.3 million last year, from €331.1 in 2020 to €344.4 last year.

Richard Collins, RTÉ’s Chief Financial Officer, noted in the report that the number of households in Ireland that do not rely on a traditional television is now over 15 per cent of households and has been growing steadily in recent years, leading to RTÉ loses a significant percentage of its budget revenue stream from the license fee.

“As media consumption patterns become more complex, the television license fee mechanism becomes less and less reflective of how people consume public service content. Because of this, other countries are moving the mechanism to a media fee or other methods instead of being device dependent,” he wrote.

https://www.independent.ie/irish-news/rte-runs-up-44m-overspend-despite-aim-to-cut-costs-41849729.html RTÉ makes overspending of 4.4 million euros despite the goal of reducing costs

Fry Electronics Team

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