Eircom reports 10pc decrease in annual revenues to €1.5bn

18 Oct 2012

Annual revenues have dropped 10pc or €174m to €1.5bn from the previous year for telecommunications company Eircom, while its earnings sank 16pc or €104m to €542m for the full year through 30 June 2012. The losses, however, were expected, the company said.

“The performance of the business continues to decline, but this was in line with our expectations,” said Herb Hribar, CEO Eircom Group.

Eircom realised annualised savings of €69m, but this is amount is a decrease of 7pc on the previous year.

The company’s number of mobile customers has gone up, however, by 4pc to 1,076,000, and 37pc of mobile customers are now using a smartphone. Eircom’s overall customer base now stands at 2,075,000.

Hribar said the company must do more to retain its customers, as well as stabilise its revenues and grow its profitability.

In Eircom’s fixed-line segment, revenues fell 10pc for the full year which has been reflected in a corresponding 9pc decline in fixed-line earnings before interest, taxes, depreciation, and amortisation (EBITDA) compared to the previous year. 

In the broadband market, Eircom lost 24,000 retail broadband customers in the full year through 30 June 2012, resulting in 461,000 customers, a 5pc reduction of its customer base.

The public switched telephone network (PSTN) customer base also fell, to 999,000, a drop of 108,000 customers, down 10pc for the year. 

Tina Costanza was a journalist and sub-editor at Silicon Republic