Eircom insists its financial decline is slowing
EIRCOM’S financial decline is slowing, its chief executive has insisted, after the telco posted a 10pc drop in earnings before interest, tax depreciation and amortisation (EBITDA) to €124m in the three months to the end of September.
Releasing first quarter results this morning, Eircom said that revenue in the period declined 7pc to €363m, while EBITDA retreated by €14m. Operating costs narrowed by 4pc to €160m in the first quarter.
CEO Herb Hribar, who took up the role in August just weeks after Eircom exited what was the biggest examinership ever undertaken in Ireland, said that the falls in revenue and earnings recorded in the first quarter are “in line with our expectations and our business plan”.
“We remain fully committed to our cost reduction targets and believe that the reduction in 2,000 employees is achievable within the two year timeframe,” he said.
Revenue at Eircom’s Meteor mobile business declined 5pc but EBITDA at the unit grew €2m year-on-year.
Eircom confirmed in October that it’s accelerating its job reduction plan by axing 2,000 of its 5,700 workforce by the middle of 2014.
Lenders took control of Eircom earlier this year under a deal that saw about 40pc of the company’s €4bn debt wiped out. It now has about €2.3bn in debts.