Eircom reports 5% fall in Q3 revenue but says financial results continue to stabilise

28 May 2014

Irish incumbent Eircom has released its financial results for the quarter and nine months ended 31 March 2014, noting that revenue dropped in each period, to EUR315 million (USD429.8 million) and EUR972 million respectively, down by 5% and 6% when compared to the corresponding year earlier periods. The carrier said quarterly operating costs (including EUR10 million in one-off network repair costs after heavy storms) reached EUR206 million (down 2% year-on-year), and totalled EUR630 million (-8%) for the nine month period under review. Underlying EBITDA for the three- and nine- month period was EUR119 million (unchanged y-o-y) and EUR352 million (-1%), when compared to the nine months ended 31 March 2013. Reported EBITDA was EUR109 million (-8%) and EUR342 million (-4%). At end-March 2014 Eircom reported an overall retail customer base (fixed and mobile customers) of 1.931 million, including 1.072 million mobile customers. The total customer base including wholesale customers was 2.408 million at the same date.

In the fixed line segment, Eircom said that turnover (before intra company eliminations) for the quarter ended and nine months ended 31 March 2014, were EUR243 million (-6%) and EUR742 million (-9%), respectively, although the decline was it said, partially offset by operating cost savings. When adjusted for storm repair costs, fixed line EBITDA for the quarter ended and nine months ended 31 March 2014, was EUR99 million and EUR319 million, representing a decrease of 11% and 8% respectively compared to the prior year periods. Eircom said that it lost a net 5,000 fixed lines in January-March, while nine-month net losses reached 10,000 lines. However, the losses were markedly lower than the losses of 15,000 and 40,000 lines lost for the same periods in the prior financial year. Retail losses were largely offset by an increase in wholesale customers, it said. At 31 March 2014 the carrier reported a total group broadband customer base of 704,000 connections, a net increase of 8,000 in the quarter and 41,000 in the twelve months under review, which was primarily driven by its ‘Wholesale’ business. Retail broadband users grew by 1,000 in the quarter, compared with a net gain of 7,000 wholesale lines during the three-month period, however, on an annualised basis the overall retail broadband base fell by 3,000 users and wholesale grew by 44,000, it said. Further, Eircom reported 103,000 retail and wholesale customers availing of fibre-based high speed broadband services, representing a penetration of next generation access (NGA) premises passed of 13%.

In the mobile segment, Eircom’s customer numbers increased by a net 6,000 compared to 31 March 2013, to 1.072 million. At that date, the number of post-paid customers accounted for 39% of the overall base, an increase from 31% at the end of March 2013. Mobile revenues for the quarter ended and nine months ended 31 March 2014 were EUR83 million (unchanged y-o-y) and EUR263 million (-1%), respectively. However, mobile EBITDA for the nine months ended 31 March 2014 increased to EUR23 million, up EUR14 million compared to the same prior year period, it said.

Ireland, eir, eir Mobile