Eircom posts €16m loss as sales stagnate

27 Aug 2004

Recently floated Eircom has posted a pre-tax loss of €16m for the three months to the end of June as a result of a one-off charge and interest charges. The losses are up from €11m a year earlier and were made on turnover that dipped €2m to €402m.

The company incurred a €48m restructuring charge in the quarter for the layoff of 400 employees. Excluding the charge, operating profits nearly doubled to €60m.

Earnings before interest, tax, depreciation and amortization (EBITDA) climbed 10pc to €156m, according to a statement from the company. The telco said it had 54,000 high-speed web customers at the end of the quarter and 73,000 currently.

Commenting on the results, Eircom CEO Philip Nolan said the results “were in line with expectations” and said the company was on course to reach its target of 100,000 broadband installations by the end of the year.

By Brian Skelly