RTÉ's TV advertising revenue is up by almost €10 million or 22 per cent in the first quarter of this year as the advertising market stages a strong recovery.

According to an analysis by MCM Communications, the media buying arm of McConnells advertising agency, the State-owned broadcaster posted average monthly revenue of €10-€12 million between January and April this year.

The figures were released ahead of the publication of RTÉ's annual report and accounts for 2004. These accounts are due to be approved by the Cabinet shortly.

The accounts are understood to show a surplus of €6-€7 million for 2004. But the station's management will be satisfied to see the trend continuing into 2005.

While the figures are strong, they do not take account of radio advertising, sponsorship or licence fee revenue. However, licence fee and sponsorship revenue have also been rising in recent months.

Licence fee revenue has been up significantly because of the level of new house building in the State.

RTÉ took in about €155 million in total commercial revenue in 2003, while it received €157 million in licence fee income in the same year.

MCM, which analysed the station's advertising prices,described the increase in RTÉ's revenue in 2005 as "whopping".

"In line with most other broadcasters, RTÉ are continuing to experience significant revenue growth in the year to date. By our calculation, RTÉ TV revenue is ahead of last year by a whopping €9.96 million during January to April compared to the same period last year."

RTÉ declined to comment on the figures and referred queries about its annual report to the Department of Communications.

MCM said that, while the revenue increase was great news for RTÉ, the turnaround was not necessarily a good thing for advertisers, which were faced with rising costs.

It said the cost of reaching younger viewers in particular was rising sharply, with a 42 per increase in the cost of reaching young male viewers between 15 and 34 years of age.

"We acknowledge that TV is a seasonal business relating to supply and demand but when airtime in May is costing the same or slightly more than November there is something amiss," according to the agency.

"The more expensive months of the year tend to be from September to December as demand rises in the pre-Christmas rush. Increased revenue this year so far has removed the relative value the early part of the year traditionally offers from the market," it added.