Business Irish

Monday 16 September 2019

Earnings increase at Eir despite decline in revenue

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

Ellie Donnelly

Earnings before interest, taxation, depreciation, and amortisation at Eir have increased 11pc year-on-year to €138m in the three months to 30 September.

This is despite the group reporting a 1pc fall in revenue to €312m.

Operating costs were down 12pc to €108m for the three month period, according to a trading update from the business.

Meanwhile the group had cash on its balance sheet of €170m at 30 September, up €44m year-on-year.

"We have begun a new financial year with another set of strong financial and operational results," Carolan Lennon, Eir chief executive, said.

"Our first quarter performance was underpinned by solid growth momentum coupled with a continued increase in operational efficiency."

"These results clearly demonstrate how Eir is continuing on its transformational journey to become a leaner, more agile operation, with a focus on investment in infrastructure and people."

The group now has 78,000 Eir Vision customers, up 4,000 or 5pc year-on-year.

However its mobile customers fell by 11,000 to 1,046,000 people.

The group's broadband base totalled 925,000 customers at 30 September 2018, growing by 22,000 or 2pc year-on-year, driven by growth in both retail and wholesale divisions.

Earlier this week Eir announced plans to invest €150m in rolling out 4G mobile broadband that will cover 99pc of Ireland's geographical territory within two years.

This is the first time that a mobile operator has offered universal land coverage. Where the signal is strong enough, 4G can be used for home broadband.

Eir's move comes as the Government wrestles with possible alternatives to the stalled National Broadband Plan (NBP), which is awaiting a report from auditor Peter Smyth this week to determine whether it can proceed.

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