Vodafone Ireland has said the number of mobile phone customers with the company fell in the three months to the end of March.
It said it had just under 2.2 million mobile subscribers in the year ended March 31, a fall of 56,000 from the figure at the end of 2008. It blamed the reduction on the recession and the impact of migrant workers returning home.
The company says it is now the country's second biggest broadband provider, with 190,000 customers. Vodafone Ireland's average monthly revenue per user fell by 6% over the year to €39.10.
Its parent company Vodafone, the world's largest mobile phone group, is to accelerate cost-cutting after increasing its full-year impairment charges to £5.9 billion due to problems in Spain and Turkey. This cut its pre-tax profit for the year to the end of March by more than half to just under £4.2 billion.
The company reported 2008-09 revenue and earnings figures which were in line with analysts' forecasts. In November, it said it would cut £1 billion of costs to maintain profit. Today, it said it was looking at further ways to reduce costs.
'These results demonstrate the impact of the early actions we took to address the current economic conditions and highlight the benefits of our geographic diversity,' chief executive Vittorio Colao said in a statement.
For the year to the end of March, Vodafone posted revenues up 15.6% at £41 billion. Earnings before interest, tax, depreciation and amortisation were up 10% to £14.5 billion.
It said more mature European and central European markets had seen voice and messaging revenue decline, while roaming charges also fell due to lower business and leisure travel. In Europe, service revenue declined by 1.7%.
In contrast to Europe, Vodafone said results in Africa and India remained robust driven by continued but lower GDP growth and increasing penetration.
For the year ahead, Vodafone said operating conditions would be challenging in Europe and central Europe.
Vodafone shares closed almost 4% lower at 122.4 pence sterling in London this evening.
