Eircom has reported a 5.6% fall in quarterly revenues as the company's adjusted earnings before tax and interest were flat at €168m.

Revenues for the company's first fiscal quarter ending September fell to €442m from €468m and Eircom said its net debt remains high and warned that its financial covenants may be breached within the coming 12 months.

Eircom said it sees no signs of growth or increased spending by customers, adding that it does not see this situation changing in the near to medium term. It said it continues to manage its business in a 'difficult and uncertain economic environment'.

The company reduced the number of its employees by a further 117 since the previous quarter and it said that labour resources, including contractors, have fallen by 1,675 since March 2009.

Eircom said these reductions have helped its competitive position, but much more remains to be done as part of its three year transformation programme.

Eircom said that 280,00 customers are using its 8Mb uncongested broadband service. It added that total DSL subscribers across retail and wholesale stood at 695,000 by September.

The number of fixed lines continue to fall. The company lost 20,000 lines in the last quarter, down from 23,000 lines the same time last year. Voice traffic minutes fell by 12% on the same time last year.

At its Meteor mobile phone division, revenues and profits fell for the quarter due to lower average revenues per user. This was mainly due to new lower priced plans, mobile termination rate reductions and changes to the traffic mix. Total mobile customers stood at 1,036,000 by the end of September.

Mobile broadband customers stood at 45,000 by the end of September, up 28,000 on the same time last year.

Eircom launched its second mobile offering in September and said the new eMobile service will complement its Meteor service.