Business Irish

Tuesday 21 November 2017

Vodafone Ireland pays €60m dividend to parent firm

John Mulligan

John Mulligan

A total of 5.6 billion texts were sent and 6.8 billion minutes of talk time used by Vodafone Ireland subscribers in the last financial period.

Accounts for the business obtained by the Irish Independent show that Vodafone Ireland paid a €60m dividend to its parent firm in its last financial year.

Vodafone Ireland's turnover remained reasonably steady at €1.06bn in the 12 months to the end of last March, a decline of more than 2pc on the previous period.

But pre-tax profits at the group fell nearly 19pc to €103.7m in the last financial year as it was hit by higher operational expenses. The accounts noted that the average blended monthly revenue per user for Vodafone Ireland customers declined 10.5pc in the year to €32.30. At the end of last September, that figure stood at €32.60.

Vodafone and other operators including O2, Meteor and 3 have seen the average spend per subscriber drop as customers rein in their spending. That has forced operators to reduce their own margins.

Directors for the Irish division, which is headed by Dutchman Jereon Hoencamp, noted in the accounts that the company added 3.2pc more subscribers to its 2.2 million mobile base in the last financial year.

The company, which employs about 1,200 people, is the country's biggest mobile provider. It also has a fixed-line service, with about 200,000 subscribers.

"While the operating environment remains challenging, Vodafone continues to react to the changing conditions by delivering innovative products and services," the directors add.

Operating profit at the Irish division fell more than 16pc to €106.1m in the 12 months to the end of last March, as operating costs rose to €269m from €250.7m. Its depreciation charge, related to tangible assets, fell from €182.7m in the 2010 financial year to €137.4m in the last period.

Profit after tax for the last 12-month period was €77.4m, 29pc lower than the €108.8m in the previous year.

Irish Independent

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