Private equity investment group Doughty Hanson was forced to write-down its €54m investment in Irish broadcaster TV3 last year.
The write-down was revealed in the firm’s 2008 financial results. TV3’s operating profit halved last year to €10m due to an increase in the cost of programming. However, revenues remained stagnant at €62m.
Doughty Hanson acquired the broadcaster for €265m in 2006 which included a €140m equity investment. Debt was provided by now-nationalised Anglo Irish Bank. In Q4 of 2008, it implemented a “recession plan” which involved 15% reduction in costs and redundancies.