Meteor drives Eircom profit jump

28 Aug 2007

Profits for Eircom have risen by 7pc since this time last year in part due to a strong performance by Meteor Mobile, according to Eircom’s quarterly and annual results for the year ending June 30th 2007.

With gross earnings, or EBITDA (earnings before interest, taxes, depreciation and amortisation) standing at €655m, revenue is up by €200m, or about 12pc, since this time last year.

Meteor’s solid financial performance comes as the number of subscribers has increased by 28pc in the last year to 875,000 as of June 30th 2007.

In the last quarter leading up to June 30th, 43,000 new subscribers signed up. This is a better performance than other mobile operators according to Eircom.

Meteor revenue stood at €108m for the quarter which was a 36pc on the corresponding period, also marked growth was seen in prepaid, postpaid and interconnect revenues.

While Eircom’s mobile sector has experienced much growth, its fixed-line broadband has also enjoyed similar uptake with 195,000 new subscribers in the past 12 months representing a 75pc increase over the previous year.

However overall fixed line revenue for the quarter was €410m, down by €5m on the same quarter last year. Eircom says this is mostly due to a drop in voice and dial-up internet traffic revenue.

The quarterly and annual results also highlighted a spend of €369m on capital investment in the past 12 months, an increase of €103m on the last year.

While capital investment has increased, the company has also put aside €157m for redundancy cost which are planned to go ahead over the next three years, affecting 900 current employees.

By Marie Boran