RTK, the radio station of the Catholic Archdiocese in Malta, last year received a subsidy of Lm56,300 from its parent organisation in order to survive.

It also received a capital grant of Lm38,820 from the same source last year.

The station’s annual report and financial statements for the year ending 31 December 2004 show that it made an overall profit of Lm3.

So if it weren’t for the subsidy, and other operating income worth Lm2,659, the station would have made a loss of Lm52,310.

Such a hefty loss would certainly be unsustainable in the private sector over a protracted period of time.

The station made a turnover of Lm165,950 last year from advertising, but the cost of sales amounted to Lm173,570, giving a gross loss of Lm7,620.

If one adds Lm44,690 in administrative expenses, there will be a loss of Lm52,310 for last year before the Curia’s subsidy was granted.

Moreover, last year the station had total loan of Lm153,043 – a bank overdraft of Lm54,221 and a bank loan of Lm98,822.

The bank overdraft is secured by a pledge over a fixed deposit account held by the Archdiocese of Malta amounting to Lm50,000, while the bank loan is also secured by a fixed deposit account held by the Archdiocese of Malta amounting to Lm100,000.

The station had debtors who owned Lm107,761 and total creditors of Lm30,290 at the end of last year.

In the previous financial year ending 31 December 2003, RTK had received a similar subsidy of Lm58,150 from its parent organisation in order to operate. There was no capital grant that year.

The overall profit at the end of the end of the financial year was Lm41. So if it weren’t for the subsidy, and other operating income worth Lm3,965, the station would have made a loss of Lm54,643.

The station made a turnover of Lm173,723 in 2003 from advertising, however the cost of sales amounted to Lm181,205, giving a gross loss of Lm7,482.

If one adds Lm47,161 in administrative expenses, there will be a loss of Lm54,643 for 2003 before the Curia’s subsidy was given.

Moreover, in 2003 the station had total borrowings of Lm154,076 – a bank overdraft of Lm55,254 and a bank loan of Lm98,822.

The bank overdraft was secured by a pledge in a fixed deposit account held by the Archdiocese of Malta amounting to Lm50,000, while the bank loan was also secured over a fixed deposit account held by Archdiocese of Malta amounting to Lm100,000.

At the end of 2003, the station had total debtors of Lm125,345 and total creditors of Lm83,865.