Losses at NewsTalk 106 and Spin FM contributed to pre-tax losses of €1.2 million for 2002 at Communicorp Ltd, the Denis O'Brien-controlled radio group.
In a poor year for advertising, the company managed to boost turnover from €15.2 million to €16.8 million, but pre-tax losses still crept up to €1.2 million from €502,000 the year before.
The investments in NewsTalk and Spin prevented the company from trimming back its 2001 losses.
Mr O'Brien has told both stations he is committed to them on a long-term basis. He is now the biggest shareholder in NewsTalk, with 53 per cent of the equity.
NewsTalk has a new chief executive, Mr Dan Healy, who has introduced a number of changes since taking over. Along with the station's board, he is determined to improve the station's commercial position.
According to the company's consolidated profit and loss account, associated undertakings, understood to be NewsTalk, Spin and Wicklow's East Coast radio, made a combined loss of €905,000.
Newstalk and Spin were the main contributors to this figure, while East Coast turned in a small profit.
During 2002, Communicorp owned 23 per cent of NewsTalk, 25 per cent of Spin 103.8 and 27 per cent of East Coast Radio. It also owned 15.2 per cent of Independent Network News Ltd.
The three shareholders of the company were listed as Mr O'Brien, Mr Denis O'Brien Sr and Mr Paul Connolly of the European Radio Corporation Limited. Mr O'Brien was the largest shareholder with almost 5 million shares.
According to the accounts, Mr O'Brien advanced director's loans of €2 million during the year. A loan from another director, Mr Leslie Buckley, of €228,417 was also outstanding at the end of 2002.
According to the accounts, these loans were non-interest bearing and had no specified date for re-payment.
The accounts state that the company is "actively involved in researching potential business opportunities in Europe".
The number of staff working for the company fell from 287 to 277. However payroll costs rose to €6.1 million from €5.5 million in 2001.
Almost 30 companies are included as "subsidiary undertakings" in the accounts, many of them based in the Czech Republic.
The performance of these stations is believed to have been hampered by the heavy flooding in central Europe in 2002. Despite this, the Czech stations had a turnover of €6.3 million up from €5.7 million the year before.
Several Irish companies are listed as subsidiary undertakings in the accounts, including: Radio Two Thousand, trading as 98 FM; Bus Media Ireland Limited; Ireland's Communications & Advertising Network Ltd; Wapco Limited; Kildernahy Ltd; European Radio Corporation; La Touche Investments; Brigadoon Limited; and Modular Investments Limited.
