Eircom, the former Irish State telco, announced today a 2% fall in earnings for the first three months of its financial year. Group EBITDA (Earnings before interest, taxes, depreciation and amortization) was €169m for the three months to the end of September while fixed line earnings were down €5m to €140m from the same time last year.
Eircom said that its first quarter revenues amounted to €513m, in line with the corresponding quarter in 2007. Revenues at mobile unit Meteor, was up 9% to €126m while earnings rose by 2% to €29m. Meteor's subscribers topped the million mark during the quarter.The company said that it added 21,000 DSL broadband customers in the three month period, bringing the total number of retail and wholesale DSL customers to 614,000. This represents a 25% increase on customer numbers for the same time last year.
The Government is to award 3 Ireland the contract to deploy the long-awaited €40m National Broadband Scheme (NBS).
The NBS aims to bring high-speed internet services to about 10% of the population currently unable to get a broadband service.
Eircom said on Tuesday, that it is "extremely disappointed not to be awarded the contract for the National Broadband Scheme. Our comprehensive bid was supported by the leading vendors and suppliers on the market and was backed by the most significant regional interest groups. Our bid would have delivered a level of broadband coverage which exceeded that required by the Government – both in terms of geographic reach and available speeds."
Commenting on the quarterly results, Rex Comb, CEO Eircom, said, "The deteriorating economic environment has impacted the performance of the group during the first quarter, reflected in increased pressures on our revenues. Group revenue for the quarter is €513 million, in line with the prior year. Group EBITDA was €169 million for the quarter, down 2% on the corresponding quarter last year. Fixed line EBITDA, after management fees and fair value adjustments of €3 million, was €140 million, down €5 million from the corresponding quarter last year. eircom added 21,000 DSL customers during the first three months of the financial year, bringing the total number of retail and wholesale DSL subscribers to 614,000, a 25% increase over the prior year.
Meteor Mobile revenues, before intra-company eliminations, were €126 million, up 9% on the corresponding quarter and EBITDA was up 2% to €29 million. Mobile subscribers topped 1 million during the quarter, a significant milestone that underlines the competitive impact Meteor has made in the Irish mobile market to date. Progress continues at pace with the rollout and testing of Meteor’s 3G network. The network coverage continues to expand in line with the milestones outlined in the licence agreement and the Group plans to launch commercial mobile broadband services early in the new year.
In line with the changing economic climate and consistent with an increased focus on cost reduction across the group, we remain committed to continued headcount reductions."
