Eircom reports 7% drop in quarterly revenues

Friday 07 December 2012 11.45
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Eircom reports a total customer base of  2,058,000 to the end of September
Eircom reports a total customer base of 2,058,000 to the end of September
Eircom CEO Herb Hribar says company performance in line with expectations
Eircom CEO Herb Hribar says company performance in line with expectations

Eircom has reported a 7% drop in revenues to €363m for the three months to the end of September compared to the same time last year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) for the company's fiscal first quarter fell by €14m on the last year to €124m - down 10% on the same time last year.

Operating costs for the quarter amounted to €160m for the quarter, a 4% improvement on the previous year.

Eircom said its total customer base stood at 2,058,000 by the end of September. This figure includes 1,079,000 mobile customers.

The company said that its broadband customer numbers have fallen by 4% over the 12 months to the end of September.

Mobile revenues for Eircom, which owns Meteor as well as the E-Mobile brand, were down compared to last year but customer numbers were up 3% in the three month period.

Eircom chief executive Herb Hribar said the performance of the business "continues to decline, but the decline is slowing". He added that the company is performing in line with the company's expectations and business plan.

''We remain fully committed to our cost reduction targets and believe that the reduction in 2,000 employees is achievable within the two year timeframe,'' he added.

The Eircom chief said that it is planning to continue to retain and win back customers in what ''is a very competitive telecoms market operating with a difficult economic backdrop''.

He said the company is aiming to offer broadband speeds of up to 70Mn to customers by next summer after the rollout of its recently purchased 4G spectrum.

Eircom also announced today the locations of the next 300,000 homes and business across Ireland which will receive fibre broadband as it continues to build the country's largest fibre broadband network.

The Eircom boss said the latest phase of its network is due to be completed by December 2014 and will reach one million premises. ''Eircom has already reached more than 150,000 premises and it is hoped the network, which is available to all operators, will deliver services to customers in the first half of the year,'' he added.