Eircom's yearly revenues and earnings deliver expected fall

Thursday 18 October 2012 16.02
Eircom notes that 37% of its mobile customers now using smartphones
Eircom notes that 37% of its mobile customers now using smartphones

Eircom has announced a 10% fall in annual revenues while earnings fell by 16%. The declines had been expected.

The company said that revenues for the year to the end of June fell by €174m to €1.515 billion.

Despite annualised savings of €69m, the company's earnings before interest and tax fell by €104m to €542m.

Eircom said its mobile phone customers grew by 4% to total 1,076,000 by the end of June. It noted that 37% of its mobile customers are now using a smartphone.

Revenues at its fixed line customers fell 10%, which was reflected in a 9% decline in fixed line earnings for the year compared to the previous year.

In the broadband market, Eircom said it lost 24,000 retail customers resulting a 5% reduction in its customer base. The company said its overall customer base stood at 2,075,000 by the end of June.

''The performance of the business continues to decline, but this was in line with our expectations,'' commented the company's chief executive Herb Hribar.

''The Irish telecoms market is witnessing intense competition from other operators and customers to demand better value. Eircom will do more to fight for, retain existing customers and even win back former customers,'' he added.