Eircom reports 8% fall in revenue for year-ended 30 June 2013

27 Sep 2013

Irish former monopoly Eircom Group today announced its financial and operational results for the full year ending 30 June 2013. The carrier booked full year turnover of EUR1.394 billion (USD1.883 billion), down EUR121 million or 8% on the figure reported in fiscal 2011/12. Operating costs for the period under review fell EUR37 million (6%) to EUR612 million, but despite these savings, Eircom said EBITDA declined by 12% year-on-year to EUR487 million. The Group’s retail user base (i.e. fixed and mobile), stood at 1.976 million at 30 June 2013, including 1.059 million mobile subscribers, while the overall customer base – including wholesale customers – was 2.390 million.

In the mobile market segment, Eircom closed out June 2013 with 1.059 million subscribers, down 2% y-o-y, although the carrier did report 83,000 net additions in the higher value contract user segment during the year under review, reflecting an annualised increase of 67,000 post-pay customers. Sales derived from mobile services fell 5% for the year, but mobile EBITDA grew to EUR17 million, almost double the previous year. Turning to fixed line operations, Eircom said it booked EUR1.093 billion in turnover, down 9% y-o-y, as EBITDA fell 12% to EUR470 million. The PSTN customer base fell to 917,000, a reduction of 23,000 customers during the year, it said. Meanwhile, in the broadband market, Eircom had 451,000 retail broadband customers at mid-2013, a 1% decrease y-o-y, although on a positive note, wholesale broadband lines grew 18,000 during the year to a total of 218,000 lines at 30 June 2013.

Commenting on the results, Eircom chief executive officer Herb Hribar, said: ‘We have made continued progress during the year on a number of key issues that have helped us to stabilise our bottom line EBITDA performance and to come in ahead of our plan. The launch of our superfast fibre broadband network and our achievement this week of becoming the first operator in Ireland to offer 4G mobile services, demonstrate how Eircom continues to deliver on its commitments during the past twelve months’. He went on to add that: ‘The cost transformation programme is on track and, despite an increase in competitive intensity during the year, we have made progress in reducing our fixed line losses and improving in mobile profitability over the past year. However, significant challenges remain and Eircom is committed to addressing many of those challenges in the coming twelve months’.

Going forward, Hribar noted that the his company is committed to spending significant amounts to build a network capable of supporting superfast broadband and data services across its entire customer base. ‘Our fibre network passed 475,000 homes and businesses at the end of June 2013 and remains on track to pass 600,000 premises by the end of December. Early next year customers will be able to access speeds of up to 100Mbps. Following the launch of our 4G service this week, almost 30% of the population already has access to superfast mobile data speeds which we believe will peak between 20Mbps-25Mbps’.

Ireland, eir