| 8.4°C Dublin

Eircom reports drop in second half revenues but progress on cost cutting

Close

Eircom Group Headquarters

Eircom Group Headquarters

Eircom Group Headquarters

Eircom has reported a second quarter drop in revenues and earnings but says there has been progress on cost cutting.

The company has also announced plans to reschedule of its debt arrangements in a bid to secure Eircom’s financial structure.

It also added that its bottom line is improving as it reported earnings before interest, taxation, depreciation and amortisation (EBITDA) of €233m for the first half, roughly in line with expectations.

Revenue for the quarter and six months ended December 2013, was €334m and €657m respectively, down 5pc and 7pc respectively, on the corresponding prior year periods.

Operating costs, excluding non-cash items, for the quarter and six months ended December, were €220m and €424m respectively, down 7pc and 10pc.

As part of the company’s ongoing cost-cutting plan, 1,679 employees have exited the Group during the past twelve months, including 840 under the most recent Incentivised Exit scheme.

A further 260 will leave the business by the end of December 2014.

“We remain on track to achieve €100m in operational cost savings on an annualised basis by the fourth quarter of this financial year,” said Richard Moat, chief financial officer,

“To date, we have already delivered €72m of those targeted cost savings”

It added that fixed line revenue decline was partially offset by operating cost savings.

On the debt restructuring, the company is extending the tenure of the facility from September 2017 to September 2019. CFO Richard Moat, said, “We believe that improving the Group’s debt maturity profile is the next step in securing a sustainable and flexible long term capital structure for eircom, at a cost that is attractive to the Group.”

 

 

Online Editors