Manx Radio made a loss of £16,500 in the last financial year, despite gaining the highest audience reach of any British station.
It's the first time the figure has moved into negative territory for four years, and it's put down to difficult trading conditions and a freeze in the public subvention, the money paid by the Manx government towards the cost of running the station.
On the positive side, latest figures from the industry show Manx Radio reaches 56 per cent of the Island's population, and during the year under review it won the Nations and Regions Award for the North-west.
Chairman David North says the station receives half its budget from government but must earn the rest itself (play audio file):
The report also highlights concern among Manx Radio mangement about the physical state of Broadcasting House.
In April, a back-up generator failed to keep the station on air during a power cut, while studios and wiring are said to be in need of replacement.