The Irish Newspaper Industry


Which is a big deal for a commercial bank as it impacts the capital ratios the Central Bank is (supposedly) watching like a hawk. For any other business it doesn’t make a huge difference generally (although it might in specific cases where bank borrowings require certain ratios to be maintained).


Not sure what that has to do with the price of turnips, or in this case the Irish Times.

I find the topic you raised quite interesting. From a Bank’s perspective, under Basel 2 the realization of book losses was partly mitigated by the fact they gave rise to deferred tax assets which could be included in the Bank’s capital calculations. However, CRD IV (Basel 3) effectively removes these assets (gently at 10% p.a.) from the calculation of the fully loaded CET1 Ratio. I wonder how long till the Irish govt follows the Spanish and Greek governments in switching theses DTA’s to DTCs (much to the ECB’s disgruntlement) so they can be included in the calculations and make PTSB and AIB more attractive to institutional investors when it comes time to off load them. I note the EU is investigating the use of DTCs for possible state financial aid implications so it may not be as straight forward.


Just hypothesising why Mantissa might be seeing it as a big deal for the Irish Times (guessing it’s because crystallising losses has been covered quite a bit in the context of the banks over the last couple of years as being a very bad thing) and trying to offer an explanation as to why there is big difference between banks and the Irish Times when it comes to the potential effect of crystallising a loss.


Basically I’m just wondering if we can expect a big exceptional P&L hit if they sell MyHome, or if they’ve already provided for it. I know the adjustment has no effect on cash.


Is myhome more cashflow positive than the paper ?


I really hope they never fix this bug


Looks cheap to me given how much they charge for an ad.

Perhaps you will explain your logic?


I would have thought myhome is throwing off buckets of cash.

After all what significant operating costs does it have relative to the cost of each of those adds :slight_smile:


The Public Isn’t Buying Press Credibility - -> … edibility/

Obviously written for the American market, but I think entirely relevant to the Irish press given the coordination involved in resurrection of local bogeyman for obvious political reasons confirming that relationship.


Other stuff you won’t read in Independent News and Media or RTE:

IBRC investigation hires law firm representing Denis O’Brien, - originally from the Sunday Business Post.

Can anyone spot the conflict of interest?


Nope, nothing to see here, move along. You really do have a vivid imagination or a persecution complex if you think it could be anything but ok… :unamused:


The Guardian is a good example - they’ve grown their brand from minor English newspaper to major international digital hub. However I believe they’re still losing money…


Can anyone explain what their business model is?


Ah sort of but not really. If you picked any prolific businessman operating in Ireland, then looked at all the businesses (s)he’s connected to; then looked at all the law firms those businesses used, you’ cover move of the top two tiers of firms. The state can’t avoid crossover with these firms. Ireland is just too small for that. It’s the same with accountancy practices; I guarantee that Dermot Desmond/Denis O’Brien/Tony O’Reilly have employed an accountancy firm (directly or indirectly) that’s also acting for a government department, at some stage. Just can’t be avoided unfortunately.


Interesting strategy or idea is to become a monopoly customer.


clickbait, they want to be the left wing Daily mail


There used to be a well known joke about the British newspapers.
“The Times was read by people who run the country, the Guardian by people who want to run the country and the Sun who didn’t care as long as there were tits on page three!”

That joke doesn’t work anymore, but the Daily Mail is a viable substitute.



The Grauniad and the Observer used to be supported by Auto Trader, but they sold it off last year for maybe 650 million. This went to the Scott Trust, which is the ultimate owner of Guardian Media Group. The Trust is probably now sitting on almost 1 billion. GMG has lost about 22 million per year the last two years. If the Trust can earn 2% on its pile, GMG should be okay for many years to come.


The government could always use the 2nd or 3rd tier firms :slight_smile:
They might even save a few euros in fees.