Revenues down 5 per cent at Eircom

Eircom saw operating profit decline by 27 per cent from €95 million to €69 million for its third fiscal quarter

Eircom saw operating profit decline by 27 per cent from €95 million to €69 million for its third fiscal quarter

Revenues fall by 5 per cent to €488 million during the quarter.

Group Ebitda, before non-cash pension credit and net construction income, totalled €173 million, down €2 million on the same period a year earlier.

Third-quarter Ebitda figures are supported by a 17 per cent year-on year-growth to €35 million from Meteor Ebitda.

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Meteor revenues reached €117 million, down 2 per cent on the corresponding period due to a decline in the pre-paid segment. However, the number of mobile subscribers Meteor has rose 5 per cent during the quarter.

Fixed line revenue totalled €385 million, a decline of 7 per cent, while fixed line Ebitda totalled €138 million, down 5 per cent year-on-year.

Capex cash outflow was €270 million for the nine months to the end of March, Eircom said.

The company said that it gained an additional 19,000 DSL broadband subscribers during the third quarter, compared to a rise of 25,000 in the quarter to December 2008 and 37,000 for the same quarter a year earlier.

Group revenue during the nine months to the end of March declined 2 per cent to €1,518 million. Group Ebitda, fell 3 per cent to €506 million.

During the nine months, fixed line revenue, before intra-company eliminations, of €1,191 million, declined 4 per cent which the company attributed to reduced ARPUs (average revenue per user) across products and bundles, higher discounts and lower traffic and PSTN volumes.

Meteor revenue over the nine month period rose 4 per cent to €372 million while Meteor was up 10 per cent to €92 million.

Total Meteor subscribers, including Mobile Broadband customers, totalled 1.02 million at the end of March, up 49,000 from 975,000 subscribers a year earlier. Post paid subscribers stood at 131,000, up 9 per cent.

Average monthly Meteor blended ARPU was down 6 per cent to €37.52 compared to the same nine month period a year earlier.

Charlie Taylor

Charlie Taylor

Charlie Taylor is a former Irish Times business journalist