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‘Irish Examiner’ owner on the rocks

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  • 09-12-2014 9:22pm
    #1
    JTMan
    Registered Users Posts: 5,535 ✭✭✭


    The Irish Times are reporting on the problems at Landmark Media Investments who print the Irish Examiner newspaper and the Evening Echo newspaper.

    https://www.irishtimes.com/business/media-and-marketing/irish-examiner-owner-landmark-media-makes-700-000-loss-1.2031591
    made a loss of almost €700,000 in the first 11 months of its existence.
    carried over a bank loan of €19.5 million from TCH
    Some €1.5 million was due to be repaid in 2014, leaving it owing €18 million to the bank.
    Landmark is also supported by a €1 million loan from its parent company
    The group employed 420 people on average last year, a little more than half the numbers on TCH’s payroll at the peak of the economic boom
    Irish Examiner’s sales falling 8 per cent to about 35,000 in the first half of 2014 and Cork’s Evening Echo selling an average of less than 14,000, down 10.5 per cent
    A deficit of €2.8 million relating to the legacy TCH pension scheme will be reflected in the 2014 accounts

    Tick tock.


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    #2
    michael999999
    Banned (with Prison Access) Posts: 7,771 ✭✭✭michael999999


    JTMan wrote: »
    The Irish Times are reporting on the problems at Landmark Media Investments who print the Irish Examiner newspaper and the Evening Echo newspaper.

    https://www.irishtimes.com/business/media-and-marketing/irish-examiner-owner-landmark-media-makes-700-000-loss-1.2031591













    Tick tock.

    Uncle Denis will buy that to add to he's collection!


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    #3
    Loafing Oaf
    Registered Users Posts: 16,008 ✭✭✭✭Loafing Oaf


    It's clear that Landmark are dependent on the forbearance of AIB to keep the show on the road and as someone on p.ie points out, you have to question the appropriateness of a taxpayer-owned bank propping up an old media basket case...


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    #4
    mcko
    Registered Users Posts: 750 ✭✭✭mcko


    Well know as Fine Gael paper.


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    #5
    michael999999
    Banned (with Prison Access) Posts: 7,771 ✭✭✭michael999999


    Loafing Oaf wrote: »
    It's clear that Landmark are dependent on the forbearance of AIB to keep the show on the road and as someone on p.ie points out, you have to question the appropriateness of a taxpayer-owned bank propping up an old media basket case...

    Sure didn't Denis o Brien's INM get a 300 million bank dept written off. Sure its nothing to do with he's fine Gael connections!


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    #6
    IRE60
    Registered Users Posts: 1,880 ✭✭✭IRE60


    I think that Dobby will have difficulty trying to buy those assets on the cheap, should they come up for sale. New draft legislation
    would put a halt to that:

    http://www.dcenr.gov.ie/NR/rdonlyres/1B0838C2-4E1B-4460-893D-8E01C03B7C43/0/Guidelines.pdf

    If anyone even takes a cursory glance at the draft - what I find 'strange' is that the Minister firstly reviews the submitted information about the merger and, where "he" is unable to form an opinion on the merger as to it being in the public interest (or not) "he will request the Broadcasting Authority of Ireland (BAI) to carry out a full investigation i.e. proceed to Phase 2"

    So, The BAI will have a huge role in all media mergers in Ireland, it it is referred to Phase 2, whether they be radio, television or indeed print - the latter medium where they have had no influence on up to this point. Indeed under the legislation they can investigate a media organisation proposed takeover of an "internet medium".

    Would it not have been better to have phase two conducted by a completely independent body.


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    #7
    flogen
    Moderators, Society & Culture Moderators Posts: 10,243 Mod ✭✭✭✭flogen


    michael999999 wrote: »
    Uncle Denis will buy that to add to he's collection!

    I can't see him having much of a chance, given that O'Reilly was blocked from buying the Tribune when he controlled INM it'd be hard to see O'Brien having much of a chance now that he's in the hot-seat (along with his Communicorp interests)
    IRE60 wrote: »
    I think that Dobby will have difficulty trying to buy those assets on the cheap, should they come up for sale. New draft legislation
    would put a halt to that:

    http://www.dcenr.gov.ie/NR/rdonlyres/1B0838C2-4E1B-4460-893D-8E01C03B7C43/0/Guidelines.pdf

    If anyone even takes a cursory glance at the draft - what I find 'strange' is that the Minister firstly reviews the submitted information about the merger and, where "he" is unable to form an opinion on the merger as to it being in the public interest (or not) "he will request the Broadcasting Authority of Ireland (BAI) to carry out a full investigation i.e. proceed to Phase 2"

    So, The BAI will have a huge role in all media mergers in Ireland, it it is referred to Phase 2, whether they be radio, television or indeed print - the latter medium where they have had no influence on up to this point. Indeed under the legislation they can investigate a media organisation proposed takeover of an "internet medium".

    Would it not have been better to have phase two conducted by a completely independent body.

    I guess the logic is that one body looks at the proposed acquisition/merger from a multi-media perspective, rather than have two separate entities looking at different aspects of a deal (or different deals depending on their make-up).

    There is a question about how prepared the BAI would be to handle deals involving print and/or online, though, given that they've been an exclusively TV/Radio-based entity until now.


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    #8
    Loafing Oaf
    Registered Users Posts: 16,008 ✭✭✭✭Loafing Oaf


    flogen wrote: »
    I can't see him having much of a chance

    Plus why would he want to really...


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    #9
    flogen
    Moderators, Society & Culture Moderators Posts: 10,243 Mod ✭✭✭✭flogen


    Loafing Oaf wrote: »
    Plus why would he want to really...

    True - it's one of the smaller newspapers in the daily market, is still struggling after a fairly big restructuring and overlaps a lot with the Indo. Hard to see it being a good business prospect for him.


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    #10
    coylemj
    Registered Users Posts: 25,327 ✭✭✭✭coylemj


    flogen wrote: »
    I can't see him having much of a chance, given that O'Reilly was blocked from buying the Tribune when he controlled INM....

    O'Reilly never wanted to take over the Tribune, he bought 29.8% of it in order to block someone else from taking it over. For precisely the same reason, Ryanair currently owns 29.8% of Aer Lingus. Above 29.8% you are obliged to launch a full takeover bid.

    Having purchased a blocking minority shareholding of the Tribune, O'Reilly then just about kept it ticking over as a tactic to discourage the Irish Times from starting a Sunday edition but generally he starved the Tribune of investment and it eventually folded.


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    #11
    flogen
    Moderators, Society & Culture Moderators Posts: 10,243 Mod ✭✭✭✭flogen


    coylemj wrote: »
    O'Reilly never wanted to take over the Tribune, he bought 29.8% of it in order to block someone else from taking it over. For precisely the same reason, Ryanair currently owns 29.8% of Aer Lingus. Above 29.8% you are obliged to launch a full takeover bid.

    Having purchased a blocking minority shareholding of the Tribune, O'Reilly then just about kept it ticking over as a tactic to discourage the Irish Times from starting a Sunday edition but generally he starved the Tribune of investment and it eventually folded.

    Of course he wanted to take over the Tribune - even if it was just a buffer.

    He couldn't, though, because Des O'Malley prohibited it in 1992.


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    #12
    Szero
    Registered Users Posts: 162 ✭✭Szero


    Loafing Oaf wrote: »
    It's clear that Landmark are dependent on the forbearance of AIB to keep the show on the road and as someone on p.ie points out, you have to question the appropriateness of a taxpayer-owned bank propping up an old media basket case...

    Anyone willing to hazard a guess as to how long the forbearance will last? With the directors only guaranteeing that Landmark will last through 2014, is 2015 the year of change?


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    #13
    JTMan
    Registered Users Posts: 5,535 ✭✭✭JTMan


    Szero wrote: »
    Anyone willing to hazard a guess as to how long the forbearance will last? With the directors only guaranteeing that Landmark will last through 2014, is 2015 the year of change?

    Landmark Media are not profitable on a day-to-day operational basis. They are being kept alive by principally AIB but also Tom Crosbie and a reasonably sized cash balance.

    AIB patience will probably last as long as their loans are been repaid. Tom Crosbie's patience depends on how deep his pockets are. The cash balance will dwindle rapidly.

    Landmark Media need to make some big brave decisions to extend their limited remaining life. Cut the unprofitable regionals loose, cut staff numbers further and get rid of the radio stations unless they are brining in dividends.

    The alternative strategy is to do little or nothing. If that happens, Landmark Media won't see their third birthday.


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