Meteor booked pre-tax losses of EUR146m in fiscal 2010/11

Meteor Mobile, the cellular subsidiary of struggling Irish incumbent Eircom, booked pre-tax losses of EUR146.6 million (USD188.7 million) for its financial year ended 30 June 2011, impacted by an impairment charge of EUR112 million. The cellco said the charge related to lower cash flows from its business, due to intense competition and a weaker macroeconomic environment, made worse by the IMF-led bailout and the impact of the national budget last year – all of which led to reduced consumer spending and a rise in unemployment. In an accounts filing, Meteor Mobile reported that full year revenues declined by 10.7% year-on-year for the twelve months to 30 June 2011, to EUR408.9 million. Operating costs for fiscal 2010/11, excluding amortisation, depreciation and restructuring costs, dropped from EUR354.8 million to EUR346.7 million. EBITDA also fell sharply, by 42% year-on-year, from EUR102 million in 2010 to EUR59 million, with the cellco’s management noting that: ‘Since the year end, the mobile market has continued to be extremely challenging and the company’s EBITDA has further declined,” the directors state. Subscriber numbers at Meteor also fell in the year, reaching 1.031 million by end-June – down 1.2% y-o-y.