Further cost cutting at Eircom as firm continues to ‘stabilise’ earnings
Eircom’s third quarter earnings have fallen slightly but the company’s latest results show that figures are ‘continuing to stabilise’, according to CFO Richard Moat.
“Earnings have been moving in a very narrow band over five consecutive quarters. We want to see that continue over the rest of this financial year,” he told Newstalk Breakfast this morning.
The Irish communications firm posted earnings before interest, tax, deductions and other costs were €119m between July and August – a €1m drop from last year.
Ongoing decline in the company’s fixed line telecoms business meant that revenue also fell €32m to €323m, according to Eircom.
However, this was largely offset by a €31m fall in operating costs that may be attributed to the group’s cost cutting schemes – and these are set to continue.
“We are announcing our latest incentivised excess scheme today – this will see around 1100 people leaving the business by the end of this calendar year,” said Mr Moat.
“Adding to the 900 that left last year, we will have achieved the target we set of the 2,000. At that stage, we think the business is right sized.”
Eircom’s CFO hoped that the benefits garnered from the launch of the firm’s new products and services with ‘quad play capability’ will further stabilise growth.
“These new launches transform our commercial capability in the market. We’re still losing retail access lines – but at a slower rate than in recent quarters,” he said.
Eircom is set to announce today that they are committed to roll out fibre from 1.2 million homes and business in Ireland to 1.4 billion homes and businesses by 2016.
"At this stage, 70pc of people in Ireland will have access to high speed broadband up to 100MB/s in Ireland," added Mr Moat.