Telecoms group Eircom has confirmed that earnings for the financial year to the end of October 2011 will be significantly below the previous period due to the weak Irish economy.
The company said lower consumer confidence and competition was putting pressure on its fixed line and mobile revenues in its consumer and small business divisions.
Eircom said, however, that the overall decline in revenues had been balanced by continued cost savings. It also said its big business, government and wholesale markets were performing in line with or better than expectations.
"There are some early signals that consumer confidence continues to weaken performance and may result in some emerging trends that could impact the existing budget," the group said in a statement.
The company, which is majority owned by Singapore's STT, said its independent directors were evaluating three proposals to restructure its €3.75 billion debt pile. One of the proposals is from STT, while the other two are from groups involving its lenders.
It will update the market on its request for a covenant waiver from senior lenders on December 15.
