Saturday 3 December 2016

Eir dials up revenue of €1.3bn with unit boost

Published 03/09/2016 | 02:30

Eir chief executive, Richard Moat. Photo: Damien Eagers
Eir chief executive, Richard Moat. Photo: Damien Eagers

Revenue and profits at Eir are set to grow by single-digit percentages again in the current financial year, after it recorded its first growth in annual turnover in eight years.

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The company, previously known as Eircom, said revenue in the year ended in June rose 4pc to €1.3bn, while earnings before interest, tax, depreciation and amortisation (EBITDA) were 5pc higher at €505m.

Chief executive Richard Moat told the Irish Independent that he expects similar increases in the current financial year.

The latest results also reveal that its wholesale broadband unit was the big driver in revenue growth during the last financial year. The division posted a 9pc rise in turnover, or €26m, to €338m.

And Mr Moat defended price rises at the unit that have angered rivals that buy services from Eir.

Alto, the group that represents non-Eir telecom operators here, has criticised an increase that has been imposed by Eir for its wholesale broadband product.

"We've been describing the scale of investment which we're making in that infrastructure, and obviously we have to get a decent return on that. I think that in terms of the prices we charge to other operators, those are fair and represent value for money," said Mr Moat.

The revenue growth at Open Eir compared to revenue at its business division of €375m, which was just 1.9pc higher. In its consumer division, revenue was €640m, with growth of just 1.3pc.

In Eir's mobile division, revenue for the financial year was €355m, a 2pc year-on-year rise. But EBITDA in the segment jumped 21pc to €70m as it recorded a 20pc EBITDA margin.

Mr Moat said that's a target that was set four years ago.

Irish Independent

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