Wednesday 21 November 2018

Earnings increase 4pc at eir as operating costs fall

Eir chief executive Carolan Lennon
Eir chief executive Carolan Lennon
Ellie Donnelly

Ellie Donnelly

Earnings at eir have increased 4pc year-on-year to €137m in the three months to 31 March, as operating costs at the telecoms firm fell by 4pc, or €5m, during the three month period.

However revenue was down 1pc to €317m in the three month period, the company said in a trading update today.

Commenting on the results, Carolan Lennon, CEO of eir, said that she was proud to lead eir though the next chapter of its “transformation journey”.

“Our focus is on driving growth through investment in both our broadband and mobile networks while creating a leaner, more agile organisation to enable us to respond better to the needs of our customers.”

In the nine months to 31 March earnings, before storm costs, increased by 3pc to €387m, but similar to the three months to 31 March, revenue has fallen by 2pc year-on-year to €955m during the nine month period.

Over the nine months costs, before storm costs, reduced by €20m or 5pc year-on-year.

The company has been on a cost cutting drive, announcing last month that it plans to shed 750 jobs from its workforce by the middle of August.

Eir currently has 3,224 full-time equivalent staff, having let go 2,000 workers between 2012 and 2013, and 250 last year.

The company reported strong broadband growth, with 919,000 broadband connections, up 3pc year-on-year, while its television business saw its customer numbers increase by 8,000 year-on-year.

However revenue from the group’s mobile business remained relatively flat during the period.

In its announcement today eir confirmed that its acquisition by French NJJ-led consortium is now complete.

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