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Eircom releases pessimistic earnings warning

14 Dec 2011

Ailing Irish operator Eircom has published a statement warning that its earnings for fiscal 2011 will be significantly lower than for the year-earlier period due to the flagging Irish economy. The fixed and mobile operator said that lower consumer confidence and competition is putting increased pressure on its performance in all business market segments. On a more positive note, Eircom confirmed it is on track to launch a fibre-optic rollout plan in January. Under the plan the telco hopes to roll out fibre connections to 100,000 homes and businesses by the summer of 2012.

As reported by CommsUpdate, earlier this week Eircom’s single largest shareholder Singapore Technologies Telemedia (STT) confirmed that it has submitted a restructuring plan to the operator’s independent directors. Eircom has published a statement saying it will consider the STT proposal, alongside two others received earlier this month. The plans on the table are aimed at restructuring the struggling telco’s EUR3.75 billion (USD4.98 billion) of debt. STT, which holds a 65% stake in Eircom, has also provided Eircom’s senior providers with a copy of the restructuring proposal. ‘Our proposal is targeted at giving Eircom an optimal chance to be competitive and viable by addressing the company’s long-term balance sheet issues, while supporting its ongoing business strategy,’ the statement said.

Ireland, eir

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