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THE BUSINESS MODEL for newspapers is “broken” and the only hope for regional papers may be in consolidating with bigger industry players, Celtic Media’s boss has said.
The publisher’s chief executive, Frank Mulrennan, today added that his company – which publishes seven regional titles and employs around 100 staff – “cannot row against the digital tide” and replace lost revenues from evaporating print sales and advertising.
He was appearing in front of an Oireachtas committee investigating the proposed sale of Celtic Media to Independent News and Media (INM). The deal has cleared competition hurdles but still needs to be approved by the government under media-merger rules.
Mulrennan, a former business and agriculture editor at INM’s Irish Independent, said there would be “well less” than €4 million left for him and other owners of the publisher by the time the sale went through. The full price for the deal hasn’t been disclosed.
“Since 2008, the business model in local newspapers I would have to say is broken. We almost went out of business in 2012 due to the weight of bank debts and continually falling revenues,” he said.
“Five years, later the reality is that we are facing a broken business model in terms of publishing local newspapers and, dare I say it, newspapers.”
Mulrennan and other Celtic Media executives led a €5.5 million management buyout of the publisher in 2012, however he noted that regional publishers in Ireland had suffered a 65% fall in print advertising and 35% fall in circulation revenue since 2008.
Concentrated ownership
Mulrennan joined INM chief executive Robert Pitt before the committee in defending the deal amid suggestions it would further concentrate media ownership in Ireland and could lead to a loss of editorial independence at the Celtic Media titles.
INM already owns the country’s highest-circulation daily and Sunday newspapers, the Independent and Sunday Independent, as well as national titles the Herald and Sunday World.
Its largest shareholder, Denis O’Brien, also owns Communicorp, whose stable of radio stations includes Newstalk and Today FM.
INM reportedly ran the rule over buying Newstalk last year, but balked at the deal – leading to a public boardroom spat between Pitt and company chairman Leslie Buckley.
Pitt today said his company, which is estimated to have a cash pile of more than €85 million, was “no longer” looking at buying radio stations on the island of Ireland.
Both he and Mulrennan claimed Celtic Media titles would be guaranteed their independence after the merger – although consolidation of some functions was likely.
Making it in digital
Mulrennan told the committee his company was “finding it awfully hard to make any news in digital” and it needed a larger partner like INM because of the competition online from the heavily subsidised RTÉ and global giants like Facebook and Google.
“The only future is through having a digital future and a marketing future, and that takes resources,” he said, adding that Celtic Media had put some properties on the market to pay a bridging loan ”because that sale has been so delayed”.
“We have put our Cavan and Navan newspaper offices on the market. We are going to put our Athlone office on the market.”
The company also had “serious misgivings” about the future of one of its titles, the free, Meath-based Forum, Mulrennan said.
“We are talking about a sale here that is less than €4 million. When you take off professional fees and (loan repayments) … well less. There’s nobody going away to the Bahamas, we’re turning up to work on Monday when the sale happens.”
The publishing group, which also includes the Meath Chronicle, the Westmeath Independent and Westmeath Chronicle among its titles, was put together for nearly €65 million in the early 2000s by a Scottish firm. Celtic Media bought the Connaught Telegraph out of liquidation in 2014.
Mulrennan remains the company’s largest shareholder, while one-quarter of its shares are owned by editors and other staff. Its latest accounts, to the end of 2014, show the parent company lost just over €100,000 for the 12-month period.
Written by Peter Bodkin and posted on Fora.ie
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I know everyone deserves a shot but if paddy went to Romania and behaved like that, he’d be sure of a good hiding from the cops or have the book flung at him in the courts for a sentence he wouldn’t forget.
In Balkan countries you do not mess with the police and jails make Mountjoy look like Disneyland.
Why brin the Balkans into it? They have nothing to do with Romania!
Why bring the Balkans into it? They have nothing to do with Romania!
The baltic weather sometimes causes brain-freeze, Romania is indeed part of the Balkan peninsula.
Ah – I hadn’t realised the border extended all the way up to the Danube. I have been to a Baltic prison however, which would make any Irish prison seem like a 5 star holiday camp.
And this is exactly why people reoffend.
Yes and no previous convictions translates as hasn’t been caught before until now. What a joke of a justice system we have, no wonder Dublin is in decay, there’s no consequence to bad behaviour.
St Vincent de Paul will prob pay the fine for him anyway
Why? To pay 3k every time?
First paragraph states that he has now paid the fine.
Further down states that at court in June he was given 6 months to pay.
6 months = december
Maybe he shouldn’t have paid the fine. He would have got “six months” but would have been let of of prison after an hour an a half.
He acted very violently in a corner shop to an innocent man doing his job. If this is his style of dealing with things that irritate him, who knows what he could do to source the €3000.
€3000 = sorrow and regret are Genuine, Judge = Joke.
Seems as though the Romanian chap has integrated well with the local population.
Back on the boat for that Romanian parasite
Not the first time of heard of that particular judge giving soft sentences
I can bet it he headbutted a member of the emergency services. The story would be calling for mandatory sentences to be introduced. Do ordinary people not count when it comes to assault.
Sounds like a real nice guy. 3000 for an attack like that involving bleeding caused by biting sounds too low. After blood testing it would have taken a long time to be sure he wasn’t infected with something.
It’s a bit like a Scottish bloke I kind of half know who’s being living here about 15 years and is always giving out the eastern European “Foreigners” he has to work with. I point the irony out to him once but for some reason he didn’t consider himself a “foreigner”.
You do know the history of population movement between Ireland and Scotland ?
I’d have a working knowledge. What’s your point?
Brits abroad call themselves expats, not migrants, or emigrants. Everyone is a foreigner to them, regardless.
I thought only white folks could be racist
Pop to any Middle Eastern country and you’ll see more racism in 1 day there than you would in 1 year in Europe. There’s no attempt to hide or discourage it over there.
Most Romanians are white, so that’s a pointless comment.
Send the yoke back to where he came from…..
Madness that the incident happened in June 2014 and only getting sorted out now. Only arrived in Ireland and was unemployed.For this type of offence he should be told to “paint and decorate” Romania and be kicked out.
Just deport him
If this was any other country with sane border laws he would be sent home after a long prison sentence.
3000 out of pocket. He will remember that the next time he is having a few scoops
Who hasn’t had a few scoops and then a good Indian meal.
Sounds like the sort who wouldn’t want a Muslim consultant.
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Absolutely disgusting! If an animal bit a person it would be put down!! This vile person should be deported back to his motherland & never again be allowed back to Ireland. Much too lenient a sentence in my opinion.
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