Eircom sees earnings fall 10% despite cost cutting

Friday 27 September 2013 07.48
Eircom is in the middle of a cost-cutting programme as it seeks to reorganise its business
Eircom is in the middle of a cost-cutting programme as it seeks to reorganise its business

Revenues at Eircom Group fell 8% to €1.39 billion in the 12 months to the end of June, according to the company’s full-year results.

The company said it had also seen its operating costs fall during the year, down 6% to €612 million.

Despite this reduction in costs, earnings before interest, tax, debt and amortisation were 10% lower at €487 million.

Eircom is in the middle of a cost reduction plan as it seeks to reorganise its operations following an examinership process last year.

According to CEO Herb Hribar, that plan remains on track with the company making progress in “reducing our fixed line losses and improving in mobile profitability over the past year” despite an increase in competition.

The number of customers in Eircom’s mobile vision fell in the last quarter, according to the results, however the group has succeeded in adding more customers to more valuable post-pay contracts during the past year.

Eircom’s home broadband customer numbers fell 1% to 451,000 in the year to the end of June, however its wholesale business saw the number of broadband lines increase by nearly 10% to 218,000.