Friday 19 January 2018

Profits drop 24pc to €60.3m at Vodafone last year, quarterly revenue grows 3.4pc

Vodafone Ireland chief executive Anne O’Leary. Smartphone customers make up almost two-thirds of the mobile market
Vodafone Ireland chief executive Anne O’Leary. Smartphone customers make up almost two-thirds of the mobile market

Gordon Deegan

Pre-tax profits at the Irish arm of mobile phone giant Vodafone declined by 24pc to €60.35m last year.

According to accounts just filed with the Companies Office, Vodafone Ireland Ltd's revenues remained flat at €949m.

The accounts show that the firm, led by Cork native Anne O'Leary, paid a dividend of €12m to its parent last year following a dividend pay-out of €80m in fiscal 2014.

The firm is the market leader in Ireland in relation to mobile phone customers with two million at the end of March last

It recorded an 11pc, or 127,000, increase in smartphone subscribers last year.

The firm's overall customer base totalled 2.3 million at the end of March.

Numbers employed at the firm rose from 786 to 881.

The accounts disclose that Vodadone Ireland received €14.6m from rival Three Ireland last year arising from Three Ireland's firm H3G Ireland terminating the companies' network-sharing agreement.

The directors state that as a result of the termination of the agreement, "Eudokia Ltd became a wholly owned subsidiary of Vodafone Ireland following the purchase of the remaining 50pc share capital from H3G Ireland".

According to the directors' report, "Vodafone Ireland reported another strong year in 2015 in a continuing challenging and competitive operating environment".

The directors say that almost 1.3 million Vodafone customers now use a smartphone, making up 65.5pc of the mobile customer base.

The profit last year takes account of high non-cash depreciation and amortisation costs of €120.7m. Staff costs last year increased by 7pc to €73.6m. Directors' remuneration increased from €1.33m to €1.41m.

The firm incurred an actuarial loss of €74.9m on its pension scheme last year following a €1.4m actuarial loss in fiscal 2014.

Meanwhile, the firm has published results for its third quarter of this financial year for the three month period ending December 31.

Vodafone Ireland reported revenue growth of 3.4pc, up to €240.4m while revenue in its mobile enterprise business also grew 6.9pc.

The increase represent back-to-back quarterly growth for the network.

Mobile customers on contract grew by 59,600 when compared with the same time last year and it reported a 126pc increase in the number of 4G devices.

Speaking about the quarterly statistics Vodafone Ireland CEO, Anne O'Leary said that performance continues the 'positive upward momentum'.

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