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Banshees co-producer sees tax credits fall more than 50%

Morgan O’Sullivan’s Metropolitan Films International secured €34.5m in section 481 credits in year to last April

Metropolitan Films International, the co-producer of the multi-Oscar nominated Banshees of Inisherin, saw the amount it secured in tax relief last year falling by more than 50 per cent to €34.5 million.

The Wicklow-based production company, with its subsidiaries, is the largest operator in the co-production of movies here. It was also involved in Netflix’s Viking drama, Valhalla and global hit TV series Jamie Dornan’s The Tourist last year.

The directors state that the main activity of the group is that of producing films and TV series here, primarily by way of co-production of incoming European and international studio projects.

Newly-filed accounts show that the €34.5 million it secured in section 481 tax credits in the 12 months to the end of April last year was less than half the €72.5 million received the previous year.

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At group level, Metropolitan recorded revenue of €94.2 million, down €45 million or 32 per cent on the €139.2 million in 2022.

Overall production expenses were down €86.15 million to €125.1 million from €211.24 million, resulting in a gross loss of €30.87 million. Administrative expenses of €3.64 million brought the pretax loss figure to €34.5 million, which, when offset by the section 481 corporation tax credit of €34.5 million, resulted in a modest post-tax loss of €19.748.

The individual tax breaks for each production are not disclosed in the accounts, though figures published by Revenue show that the third season of Valhalla qualified for Revenue 481 movie tax reliefs of between €10 million and €30 million.

As part of a group reorganisation, Octagon Films acquired Metropolitan Films International Limited and its subsidiaries on February 5th, 2023.

One of the driving forces behind the business was distinguished producer James Flynn, who died in February last year.

The accounts – signed off on March 26th by directors Morgan O’Sullivan and Juanita Wilson – show the cash funds rose to €23.11 million from €21.32 million.

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