Eircom annual revenues down but broadband stabilising
Eircom has announced a drop in revenues and earnings for the year end June 2013 but the figures also showed signs of stabilisation in its broadband business.
In a week when the firm announced the rollout of its 4G service, it said revenues were down 8pc to just under €1.4bn while earnings were off by 12pc to €487m.
Eircom had had 451,000 retail broadband customers in the year end, a 1pc decrease on its retail broadband customer base since June 2012.
In the mobile segment, the Group’s customer numbers fell by 2pc in the quarter to 1,059,000 through the end of June 2013
Operating costs were €612m for the year, down €37m from the prior year, a 6pc improvement.
Commenting on the results, Eircom chief executive Herb Hribar said: “The cost transformation programme is on track and, despite an increase in competitive intensity during the year, we have made progress in reducing our fixed line losses and improving in mobile profitability over the past year.
“However, significant challenges remain and eircom is committed to addressing many of those challenges in the coming twelve months.”
In the fixed line market, revenues fell 9pc for the year to €1,093 million which was reflected in a corresponding 12pc decline in fixed line EBITDA to €470m compared to the previous year.
In Eircom’s mobile business, the Group’s customer numbers fell by 2pc in the quarter to 1,059,000 through the end of June 2013.
However, there were 83,000 net additions in the higher value post-pay segment during the year through June 2013, reflecting a year on year increase of 67,000 post-pay customers. Mobile revenues continued to decline by 5pc for the year but mobile EBITDA grew to €17m, almost double the previous year.
Earlier this week, Eircom became the first Irish operator to launch a 4G mobile network, giving smartphone, tablet and laptop users broadband speeds up to 10 times faster than what existing mobile services offer.
The company has launched the network for Meteor and eMobile users in Dublin, Carlow and Athlone. Cork, Limerick and Galway are set to follow by the end of the year. Altogether, almost half the country's population will have access to the service by the end of December, with the company pledging to increase coverage to 70pc within three years.