Earnings up despite fall in revenue at eir
Revenue at communications company eir has fallen by €7m or 2pc year-on-year to €322m in the three months to 30 September.
The fall was mainly due to a strategic decision to exit low margin business lines within the eir business division, a statement from the company said.
However the company’s earnings before interest, taxation, depreciation, and amortisation (EBITDA) rose 2pc to €125m in the three month period, as the company focused on simplification and overall cost efficiencies throughout the business.
"We have started the year with good momentum, and the group continues to deliver solid results with EBITDA growth of 2pc compared to the prior year," Richard Moat, CEO eir, said.
The company reported strong broadband growth, with 903,000 broadband connections, up 4pc or 36,000 year-on-year.
In the fixed line segment, revenue (before intra company eliminations) for the three months ended 30 September was €239m, a 4pc decrease when compared to the same period last year.
Fixed line EBITDA of €110m for the three month period was broadly flat compared to the corresponding prior year quarter.
Meanwhile the company reported a "stable" mobile base, with a total of 1,057,000 mobile customers overall, 49pc of which are on postpay contracts.
Reported mobile revenue (before intra company eliminations) was €85m for the quarter, a decrease of €3m when compared to the same period last year.
Mobile EBITDA for the quarter of €15m increased by €2m or 20pc compared to the corresponding quarter in 2016.
"The first quarter results are in line with expectations and continue to show the progress of the group," Huib Costermans, CFO eir, said.