Belfast Telegraph

Thursday 17 April 2014

Eircom chiefs happy with results despite revenue and earnings fall

Eircom bosses have insisted the company is performing to expectations despite revenue and earnings falling again in the last quarter.

Releasing results for the three months to the end of December, the company said that revenue fell 6% to €361m (£312m) in the period, while earnings before interest, tax, depreciation and amortisation (EBITDA) fell 8% to €119m.

That decline in EBITDA still outpaced the fall in operating costs at the group, which fell 7% to €157m (£135m).

But the rate of decline in EBITDA was slower than the 10% fall Eircom recorded in the three months to the end of September.

Eircom, which also owns the Meteor mobile service, said that its total customer base stood at 2.44m at the end of December.

The company exited what was the Republic's biggest ever examinership last year. Senior lenders took control of the business under a deal that slashed Eircom's debts from about €4bn (£3.46bn) to €2.3bn (£1.99bn).

Chief financial officer Richard Moat said Eircom's fixed-line losses are reducing and the group is outperforming the mobile segment. "In addition, we are making steady progress in our €100m (£86.4m) cost reduction programme," he said.

Eircom has said it is planning to lay off about 2,000 more staff.