O2 full-year results show 'challenging' Irish market
Published 27/02/2010 | 05:00
O2 IRELAND boosted its operating income before depreciation and amortisation by 6.5pc to €78m in the quarter to the end of December. Its total revenue fell 6pc to €228m in the period, the company's Spanish parent, Telefonica, revealed in full-year results that were released yesterday.
O2 Ireland said its service revenue -- which excludes revenue from its retail units -- fell 2.7pc (quarter on quarter) in the fourth quarter to €207.3m.
Telefonica indicated service revenue at O2 Ireland fell 8.8pc in the three months to the end of December, compared to the corresponding period in 2008.
The overall performance in the final quarter of 2009 just tipped O2 Ireland into positive operating income growth for the full-year, recording a 0.3pc rise to €302m.
The figures show that O2 Ireland's service revenue declined 7.4pc during 2009 (compared to 2008) to €842m. The operating income before depreciation and amortisation margin rose to 33.4pc from 31.5pc. Total revenue, including from retail units, fell 6pc to €905m.
The average monthly revenue (ARPU) from all subscribers fell 8.3pc to €36.90. In the fourth quarter, the figure was 14pc lower, year on year, at €39.46.
Bill-pay subscribers spent an average of 15pc less in the last quarter, with ARPU dropping to €58.85 compared to €69.17 in the same quarter of 2008.
The ARPU generated solely from voice traffic slumped 14.1pc in 2009, but data services continued to perform well. Data revenue climbed 9.1pc in the quarter and was 10.9pc higher for the year.
O2 Ireland's chief financial officer, Paul Whelan, described the market as "challenging". He said there were "limited signs of any underlying improvement" in the market so far this year.
Telefonica said group net profit for the last quarter rose 22pc to €2.44bn. Revenue was 1.2pc higher at almost €15bn.
Earlier this month, O2 Ireland said it was planning to cut 50 jobs in Limerick and Dublin. It employs about 1,300 people here. It also plans to turn some retail units into franchises.