Big surplus for RTVE Corporation

chris

Already a year since Spanish public national broadcaster Radio Televisión Española (RTVE) reorganized itself by becoming a corporation, latest figures would suggest the change has been for the better.

Among other actions, having fired over 4,000 old and experienced workers and hiring some 1,500 new and young employees seems to have paid off – at least in financial terms. In 2007, the corporation made a profit after taxes of €18.4 million.

"The public radio and television national broadcaster have cost zero euros more than budgeted to Spanish citizens," said Luis Fernández, RTVE's president (pictured, left).

This result comes after the new context the corporation had to work in with new audience fragmentation as a result of new national private channels Sogecable's Cuatro and Grupo Imagina's laSexta.

Spain’s laws on the national public broadcaster does not allow it to have losses. When the corporation prepared its first budget of €860.7 million for 2007 the final conditions and firing of old workers were not definite.

But the good economic results are consequence of of three actions, according to Luis Fernández: the fact RTVE has bet on its own productions, the reduction of expenses out of production expenses and balanced programming.

Income from ad sales was €746.2 million making total income of €1.189 million. Nevertheless the total income was less than forecast at the beginning of last fiscal year, €20 million.

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