RTÉ announced today that it had lost €2.8 million in 2015. This compares to a profit of €200,000, which the station made in 2014.

The losses were attributed by station bosses to worse-than-expected growth in license fee revenue and the adverse impact of foreign currency on costs. Because the Euro lost value against the dollar and sterling, the station will have paid more for foreign acquisitions.

RTÉ's operating profit in 2015 was €14 million, which is a drop of over €2 million on 2014.

According to the annual report, commercial revenue at the broadcaster grew by 4% in 2015 to €155.4 million. That impressive growth came as a result of an overall improvement in economic conditions, with TV, radio, and digital advertising and sponsorship all contributing.

The total annual license fee revenue received by RTÉ between 2014 and 2015 rose by a modest €300,000 to €178.9 million. This was described as a "disappointing outcome” by RTÉ, taking into consideration "the general overall improvement in economic conditions and the growth in net new household formations."

The annual report also expressed concern about the increase in the number of homes without a TV set.

Reports have pointed out that license fee income received by RTÉ through public funding has declined by around 11% (€22 million) since 2008.

Operating costs increased from €312 million to €320 million. "Following significant reductions in operating costs between 2008 and 2013 of over 30%,” the report stated, "inevitable cost pressures arise, particularly in personnel related operating costs."

While it might seem bizarre to the casual observer, adverse shifts in the value of the dollar and sterling account for more or less all of RTÉ’s losses. The cost is estimated at €2.6 million.

Kevin Bathurst, Deputy Director-General RTÉ and Managing Director of RTÉ News & Current Affairs responded to the results today.

"Over the past five years we have made huge progress in reshaping RTÉ for the future,” he said.

"Costs remained substantially down on 2008 levels and successive independent reviews find RTÉ's operations to be efficient.

"Yet, while we managed to deliver some increases in commercial revenue, overall the public funding base remained static and is, in real terms, declining."

Maya Doherty, Chair of the Board of RTÉ, also gave her reaction.

“While sustaining and protecting that which RTÉ does well, the Board has also had to address many of the challenges facing all public-service broadcasters in the 21st century media landscape,” she said. "These deliberations take place in a continuously demanding financial environment.

"At the same time, there is much to note: the growth of RTÉ’s radio services through courageous programming, the breadth and quality of RTÉ’s investigative journalism, the development of a diversity strategy, and the inspiring action-plan for the Irish-language. The Board looks forward to working with the new Director-General and continuing the development of RTÉ in these challenging but exciting times.”

RTÉ's TV MD, Glen Killane, left the station recently to join Eir Sport.

The Minister for Communications, Energy and Natural Resources, Denis Naughten, under whose remit RTÉ operates, said that RTÉ's performance "should be viewed in the context of ongoing reductions in public funding in recent years and the competitive commercial market in which it operates."

The Minister added that investment in its digital services will be critical if RTÉ is to maintain its relevance and compete with larger multinational media organisations in the future.

Mr Naughten acknowledged that there is a high level of TV licence evasion, which was estimated at 14% last year. He said that the challenges facing the existing TV licence system needed to be addressed as a matter of urgency.

The report also offers a series of bullet point highlights, which reflect the broadcaster's progress over the 12 months in question, as follows:

• Biggest year ever for The Late Late Toy Show (1.36M viewers).
• Ground-breaking RTÉ Investigates programmes, including Standards in Public Office, Sex for Sale, and Collusion.
• Launch of a comprehensive action plan for the Irish-language (Meáin Ghaeilge RTÉ)
• RTÉ’s Road to the Rising event attracts hundreds of thousands to major events in Dublin City.
• RTÉ Radio 1 grows reach and share as the country’s most-popular radio station.
• Saorview becomes Ireland’s biggest television platform, overtaking Sky.
• 500 hours of top-class sport coverage.
• 5,500,000 people visit RTÉ.ie each month in 2015.
• RTÉ Orchestras, Quartets and Choirs perform to the delight of more than 156,000 people.