Eircom has reported that its earnings before interest, tax, depreciation and amortisation for the year to March 31 rose to €602m, an increase of 9%.
Operating profits jumped by 39% to €118m. This represented an operating margin of 7.2%, up from 5%.
The telecoms carrier, which re-floated on the stock exchange in March, said its revenues fell by 3% to €1.628 billion.
Eircom said its operating costs were down 2% due mainly to reduced pay costs, increased capitalised labour costs and an ongoing policy of improved cost control across all other operating costs. The company's headcount at the end of the year stood at 7,943, down from 8,547 the same time last year.
Eircom said its broadband customers exceeded 38,000 in March, up from 3,400 in March 2003. The company said its broadband customers exceeded 50,000 by the end of May and added that the pace of new connections was accelerating. It said it is confident of meeting the industry target of 100,000 broadband users by December.
Eircom said that trading since the year end has been in line with its budget and expectations.
'While the Irish market for telecommunications has become increasingly competitive, the recent introduction of our fixed line bundled product will, we believe, help to protect our existing fixed line turnover and maintain competitiveness,' a company statement said.
It added that it was determined to maintain the momentum it has achieved in growing its broadband business.
Eircom Chief Executive Phil Nolan said the company's results are in line with its expectations. 'Despite the industry wide trend of reducing voice revenues, management's continued focus on cost control, initiatives in new revenue areas and focus on margin has produced EBITDA growth of 9% and operating profit growth of 39%,' he said.
'This has allowed the business to continue to invest at a level in line with our European peers,' he added.
Eircom shares closed a cent lower at €1.43 in Dublin this afternoon.
