Eircom's second quarter earnings down 8% to 119m

Thursday 21 February 2013 17.24
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Eircom's total customer base stood at 2,442,000 at the end of 2012
Eircom's total customer base stood at 2,442,000 at the end of 2012
Eircom CEO Herb Hribar says business continues to perform in line with expectations
Eircom CEO Herb Hribar says business continues to perform in line with expectations

Eircom has said that its revenue for the second quarter to the end of December fell by €23m (6%) to €361m.

Earnings for the quarter fell by €10m to €119m, down 8% on the same time in 2011.

The company said its operating costs amounted to €157m, an improvement of 7% on the same time the previous year as Eircom continued to focus on cost savings.

Eircom said its total customer base, including wholesale customers, stood at 2,442,000 by the end of 2012.

Its retail customer base stood at 2,050,000 - this figure includes 1,086,000 mobile customers, up 1% on the same time last year.

It said that mobile revenues fell again by 5% for the three month period, but mobile earnings rose by 2%.

In the broadband market, Eircom said it added 2,000 retail broadband customers to bring its total broadband customers to 461,000 - up 1% on the same time in 2011.

The company noted that this was the first quarter of growth in broadband customers for the past seven quarters.

In the fixed line business, revenues were down 7% for the quarter, which was reflected in a corresponding 12% fall in fixed line earnings.

''The business continues to perform in line with expectations as we make progress to stem our customers losses, revenue decline and profitability erosion,'' commented Eircom's chief executive Herb Hribar.

He said that Eircom was expanding the reach of its fibre network from one million to 1.2 million homes and businesses.

''This incorporates a further additional 78 communities throughout the country and when completed, will provide high speed broadband connections to 60% of homes and businesses in Ireland,'' the CEO added.

Mr Hribar also said that the company plans to trial high speed 4G data services in the coming months, with Eircom anticipating a commercial offering by the summer.