Telecoms company Eircom has reported a fall in profits and revenue for the first quarter of this year, warning that it will need to speed up cost-cutting in order to cope with economic and competitive pressures.
It said revenue in the first three months was €55m, down 7% from the same period last year. Underlying profits, as measured by earnings before interest, tax, depreciation and amortisation, were 4% lower at €170m.
Revenue from its fixed-line telephone business was down 7%, while mobile revenue dropped by 5%. But Eircom also said it reduced its costs by 8%.
Profits in the fixed-line business fell 3% from a year earlier to €139m, while mobile profits were down by just under 10% to €31m. Mobile customer numbers fell by 21,000 in the three months, Eircom's third financial quarter.
The company said further costs cuts would be needed, and that it was moving more quickly to achieve its target of cutting 1,200 jobs by March next year.
An agreement to tackle its pension deficit has now been implemented after union ballots. Eircom says this led to the elimination of its €407m pension deficit reported at the end of 2009.
Singapore's STT took a 65% stake in Eircom late last year.
