Eircom's half yearly revenues down 7%

Friday 07 February 2014 16.22
Eircom's earnings before accounting for interest, tax and depreciation charges fell by 1% to €233m
Eircom's earnings before accounting for interest, tax and depreciation charges fell by 1% to €233m

Eircom is seeking an extension of payment terms on its debt for two years from September 2017 to September 2019.

The telecoms company made the announcement alongside its half year results today. 

The results show revenue fell by 7% to €657m compared to the same six month period in 2012. Earnings before accounting for interest, tax and depreciation charges decreased by 1% to €233m.

In a statement, Eircom's chief financial officer Richard Moat said the profitability of Eircom's mobile unit continues to improve.

He said that while overall revenues for the group are down year-on-year, the company has seen an increase in revenue over the past three months compared to the previous quarter.

Eircom said its retail customer based stood at 1,947,00 at the end of December. This includes 1,079,000 mobile customers. 

Revenues in its fixed line segment fell by 10% to €499m in the first half of the year compared to the same time the previous year. The company noted that the fall in revenues was partially offset by operating cost savings.

The company said that total group broadband customers stood at 696,00 at the end of last year, an increase of 27,000 in the six month period which was mainly driven by its wholesale business. It noted that its retail broadband base returned to growth in the three months to the end of December.

Eircom said that by the end of 2013 there were 75,000 customers using its new fibre based high speed broadband services, which represented over 10% penetration of premises passed.

In Eircom's mobile division, customers numbers increased by 19,000 in the six month period to 1,079,000. 46,000 net additions were recorded in the higher value postpaid segment and the number of postpaid customers now account for 37% of the overall base.

The prepay customer base remained broadly flat at 675,00 with a strong Christmas performance offset by challenges in relation to churn - or how many people are ending their use of Eircom services. 

Mobile revenues for the six month period came to €180m, down 2% on the same time the previous year.

Herb Hribar, Eircom's chief executive, said today's results highlight the continued stabilisation in the company's bottom line and progress on its cost cutting measures.

"The macro economy in Ireland is demonstrating signs of recovery and consumer sentiment is at its brightest since 2007. We remain fully committed to addressing competitive challenges through continued investment in our fixed and mobile networks that enable the commercialisation of a new range of products and services," Mr Hribar said.

Eircom also said that it continues to follow out its 4G network, which now covers 40% of the country's population.