Sales in the Irish division of Today FM owner Scottish Radio Holdings were worth €25.03 million in the year to the end of September, or 19 per cent of the group's revenues.
The company is understood to be on the lookout for more Irish regional newspapers in addition to the five titles it already owns. Its most recent acquisition was the Longford Leader, which it purchased for €8.99 million last April.
It revealed yesterday that Today FM made a €1.26 million profit before interest, goodwill and amortisation in the half-year to October, following Scottish Radio Holdings' acquisition of full control of the station in April. Profits before interest, goodwill and amortisation at the Longford paper were €315,533 in the period to October from the takeover date in the middle of March.
Scottish Radio Holdings has a €63.08 million war chest in the form of a credit line from Royal Bank of Scotland and the group is understood to be looking at several unnamed regional titles in the Republic.
But the group walked away last month from a deal to buy the struggling radio station Country 102 FM. The breakdown was attributed to difficulties with the lease on the station's building.
In addition, recent talks on the possible purchase of the Limerick Leader broke down. It is believed there are no efforts under way at the moment to revive the talks, which are thought to have stalled over price.
While the sum Scottish Radio Holdings was prepared to offer is not known, the price it paid for the Longford title was the equivalent of 15 times profits. With a €1.31 million post-tax profit last year, the Limerick Leader would be worth almost €20 million.
Regional titles owned by Scottish Radio Holdings in the Republic include the Kilkenny People, the Tipperary Star, the Nationalist and Munster Advertiser and the Leitrim Observer.
Reporting a 5 per cent increase in group revenues last year to £83.5 million (€131.45 million) but a £1.5 million fall in profits before exceptionals and goodwill to £12.8 million, the group said it had detected tentative signs of a recovery in the advertising market since the start of its financial year.
Like-for-like radio advertising was up 4 per cent in October and November, while newspaper advertising was up 5 per cent.
Scottish Radio Holdings said Today FM was performing well. Last April, the group spent £36 million acquiring 76 per cent of the station that it did not already own. Scottish Radio Holdings said: "Although the rate of growth in the advertising economy in the Republic of Ireland has slowed, the radio station continues to record further increases in both audience and advertising revenues compared with last year."
