Billionaire businessman Denis O'Brien has seen a 64 per cent rise in pretax losses to €7.17 million at his commercial radio business Communicorp, the group behind his €200 million acquisition of Today FM.
Communicorp operates 38 radio stations in seven European countries, including Irish stations such as 98FM and Spin 103.8 in Dublin and the national news service NewsTalk.
Mr O'Brien personally invested €7.48 million in the business in July 2006, according to accounts just filed for 2005.
The filing shows that Communicorp's turnover rose by almost 41 per cent to €39.4 million in 2005, a period in which the group increased its footprint in Ireland, the Ukraine, the Czech Republic, Hungary and Estonia.
The expansion meant sales in the international unit rivalled sales in Ireland. Irish sales rose to €19.8 million from €16.07 million and sales in the rest of Europe rose to €19.6 million from €11.9 million.
The group has grown in Ireland since 2005 through the introduction of a national service by NewsTalk and the proposed takeover of national station Today FM and sister stations FM104 in Dublin and Highland Radio in Co Donegal.
That deal, agreed last month with British group Emap, is subject to the approval of the Competition Authority, the Broadcasting Commission of Ireland and Minister for Enterprise Micheál Martin. If approved, Mr O'Brien will be the second-largest player in the radio business behind RTÉ.
The group also made investments in Bulgaria in 2006, buying 70 per cent of the companies controlling music station Radio Retro and sports-talk service Radio Gong.
The 2005 accounts for Communicorp indicate an appetite to bring the business outside Europe but provide no detail as to Mr O'Brien's intentions in that regard. "The group will continue to grow and develop its radio business through the expansion of existing stations and the acquisition of new radio networks, predominantly, but not exclusively, in Europe," the filing says.
The accounts show that Mr O'Brien's father, Denis snr, and close associate Leslie Buckley both retired from the board of Communicorp in April 2005.
Progressive Democrat TD Liz O'Donnell, who lost her seat in the general election last May, joined the Communicorp board in April 2005 but resigned last September. There were two other board resignations last year. Director Paul Connolly resigned in March and John Thompson resigned in October.
The accounts show that the group spent some €19.11 million on acquisitions in 2005. Deals in the period include the purchase of Nashe Radio and Radio Apelsin in Ukraine.
That transaction was initially funded by Mr O'Brien but it was partly refinanced in 2006 through a long-term facility with Ulster Bank.
