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Eircom revenues fall 6pc in its full yr

Friday, August 29 08:37:14

Eircom today posted a 6pc fall in its revenues for its full year to the end of June last but said that its restructuring has seen 8 straight quarters of financial stability.

It recorded a loss of E333m for the year as it absorbed restructuring costs of E235m including the cost of redundancies and a defined benefit pension scheme.

Revenue at the communications group was 6pc lower over the year at E1.28bn, with earnings before interest, tax, depreciation and amortisation falling 1pc (E3m) to E479m.

Eircom made a loss of E117m last year, during which time it took an exceptional charge of E22m.

Commenting on today's announcements, Herb Hribar, CEO eircom Group, said "The past twelve months underline real and sustained progress in the transformation of eircom both in our financial performance and our product offerings to our customers. We have now had eight consecutive quarters of EBITDA stability, slowing decline in our revenues and an improved cost base."

"Network investment continues at pace both in our fixed and mobile platforms. We were the first to market with a quadruple play bundle of services including our new eVision TV offering and the first to market with 4G mobile services. Our rollout of Ireland's largest fibre network, which already reaches more than 900,000 homes and businesses, remains on schedule and on budget - demonstrating that eircom has the expertise to build a fit for purpose, scalable and future proofed network throughout Ireland. Today we are accelerating our rollout and now expect to reach 1.4m premises by December 2015," Mr Hribar added.

The company also reported E10m in expenses to cover the cost of repairs following storm damage earlier this year.

On a positive note, operating costs fell by E91m over the year as employee numbers declined by almost 1,100.

The firm also saw a E39m improvement in its finance costs following a restructuring of its debt.

During the year the number of broadband connections managed by the company rose 7.5pc to 718,000. Eircom said the rate of 'churn', that is the percentage of customers switching to other providers, also fell.

It said it had 133,000 subscribers to its new fibre broadband service, while 21,000 customers had signed up to its television platform 'eVision'.

For more visit www.businessworld.ie