MOBILE PHONE company 3 Ireland increased its turnover by 47 per cent last year as the firm expanded its presence in the mobile broadband sector.
Accounts for Hutchison 3G Ireland just filed at the Companies Office show that turnover grew from €47.9 million in 2007 to €70.3 million last year, as the company extended its footprint in the Irish market.
The company also narrowed its operating loss from €75.6 million in 2007 to €56.5 million in 2008, according to the documents. Its pretax loss was €86.5 million, compared to €97.6 million in 2007.
However, the company had received a sizeable taxation credit the previous year that was not repeated in 2008, with the result that its after-tax loss deepened to €82.3 million last year, compared to a €38.7 million loss in 2007.
The accumulated losses widened from €190.7 million to €273.1 million.
The company’s turnover comes from monthly access charges, airtime usage and messaging charges on its third-generation video mobile and broadband services.
Hutchison 3G Ireland created jobs during the year, increasing its average number of employees to 208, up from 145 the previous year. Wage, salary, social security and pension costs increased to €8.2 million, up from €6.8 million in 2007, the accounts indicate.
Last year, it received a Government grant of €15.9 million as a prepayment in respect of the National Broadband Scheme.
The company beat Eircom to the contract for the scheme, under which it will provide internet access to under-served rural areas.
It was awarded the five-year contract by the Department of Communications, Energy and Natural Resources last December and is on track to complete the roll-out by the third quarter of 2010.
The company has stepped up its investment in network infrastructure for 3G services, contracting capital commitments of €77.1 million as of the start of 2009.
3 Ireland, which launched its 3G services in 2005, has a long-term funding facility from its parent company Hutchison Whampoa to provide the money for its operations, including significant investment in infrastructure.
The 3 network has 3G coverage of more than 86 per cent of the Republic’s population, with 99.5 per cent coverage on 2G services available through a roaming agreement with Vodafone.
Despite its business comprising mobile and broadband services in the Republic, Hutchison 3G Ireland is tax resident in the UK, where its management is located.
