Mobile performance boosts first-quarter profits at Eir
Strong growth in its mobile business and a higher number of post-pay customers have been credited with helping to boost earnings at Eir during the first quarter of its financial year.
The company, formerly known as Eircom, said that its first quarter earnings before interest, tax, depreciation and amortisation (EBITDA), rose 6pc to €120m in the three months to the end of September as revenue climbed 4pc to €325m.
Chief executive Richard Moat said that the group expects to generate low, single-digit EBITDA growth in the full financial year. In its last financial year, Eir generated EBITDA of €481m, which was 3pc higher than the previous financial year.
The company has confirmed that it is targeting gross operating expenditure savings of between €60m and €80m over the next three years, and intends to reinvest 60pc of those savings in growth initiatives. The company is reported to be in talks to acquire broadcaster Setanta Sports.
Mr Moat said that the performance in the first quarter, coupled with its recent rebranding, "provides real momentum" as the company continues its transformation in an increasingly competitive environment.
The total Eir broadband customer base was 798,000 at the end of September, growing by 16,000 in the quarter and 66,000 in the last 12 months.
The retail broadband base was 453,000 at the end of September 2015, broadly flat year-on-year.