Eircom earnings hit by economic downturn

26 Nov 2008

Eircom, which had its hopes dashed for the National Broadband Scheme last night, has reported disappointing results for the first quarter of its new financial year, with revenues of €513m flat year-on-year and earnings down 2pc.

The company said earnings before interest, taxes, depreciation and amortisation (EBITDA) was down 2pc to €169m for the quarter.

EBITDA on fixed-line revenues after management fees and adjustments was €140m, down €5m on last year.

The company’s mobile wing Meteor saw a 9pc year-on-year increase in revenues of €126m, up 9pc and EBITDA of €29m, up 2pc.

In terms of broadband rollout, Eircom said it added 21,000 new DSL customers during the first quarter, bringing the total number of retail and wholesale DSL subscribers to 614,000 – a 25pc increase.

Meteor’s mobile subscribers topped the one million milestone during the quarter.

Eircom said Meteor’s 3G rollout is continuing apace, with plans to launch commercial broadband services early in the new year.

“In line with the changing economic climate, and consistent with an increased focus on cost reduction across the group, we remain committed to continued headcount reductions,” said Eircom CEO Rex Comb (pictured).

By John Kennedy

Pictured: Eircom CEO, Rex Comb

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years