Incumbent operator Eircom has reported a 9pc increase in profits for its year end 31 March, with profits up to €602m. The company also reported that DSL customers have grown from 38,000 at the end of March to 50,000 at the end of May.
However the company, which re-floated on the London and Dublin stock exchanges in March, reported that revenues fell 3pc to €1.6m due primarily to loss of low margin transit traffic and discontinued businesses.
Capital expenditure at the company increased from 6pc from €197m to €208m, while operating costs were down 2pc due to reduced pay costs, increased capitalised labour costs and improved cost control across all areas.
Operating profit increased 39pc to €118m, with an operating margin of 7.2pc, compared with 5pc a year earlier.
The company’s CEO Philip Nolan said that trading since the year’s end had been in line with Eircom’s budget and expectations. Total headcount at Eircom at the end of March was down to 7,945 workers from 8,547 a year ago.
By John Kennedy