Eircom has reported pre-tax profits of €52m for the year to the end of March, compared with an €89m loss in the previous year, in its first full set of results since returning to the stock market.
Operating profits before restructuring costs and exceptional charges jumped by 73% to €236m, while a final dividend of six cent has been declared, giving a total of 11 cent for the year.
Turnover fell by 2% to €1.6 billion, a drop which chief executive Philip Nolan said was in line with expectations. The drop was mainly due to a 11% fall in voice traffic. This has been falling because of the increasing use of mobiles, while price reductions also affected turnover. Dr Nolan said profits had risen because of lower costs, increased efficiency and improved margins.
The company says it now has more than 140,000 broadband customers. Dr Nolan said the company would need to do more to cut prices than previously thought in order to reach its target of 500,000 users by December 2007.
The chief executive also said Eircom was committed to re-entering the mobile market, but progress had been slower than expected.
Staff numbers during the financial year fell by 668 to 7,275. The company is aiming to have 7,000 employees by March 2008.
Eircom shares were seven cent lower at €1.84 in Dublin this evening as some analysts expressed disappointment at the broadband figures.
