Eircom revenue falls by 3% despite increase in mobile, broadband subscriptions

28 Nov 2014

Eircom Group has released results for its first fiscal quarter ended 30 September 2014, revealing total revenue declined by 3% year-on-year (y-o-y) to EUR313 million (USD391 million), although was up 1% quarter-on-quarter. Operating costs were EUR199 million, a decline of EUR3 million from the prior-year quarter. In line with expectations, EBITDA was EUR114 million for the quarter – with mobile EBITDA contributing EUR8 million – down 6% from the same period in 2013 largely due to ‘increased commercial investments to drive longer term growth’.

The operator’s total broadband subscriber base reached 731,000, growing by 13,000 in the quarter, driven by consumer, business retail and wholesale segments. At 30 September 2014 there were 172,000 customers using new fibre-based broadband services, representing 17% penetration of Eircom’s premises passed with fibre broadband – of which it surpassed one million on 9 September 2014. Fixed line subscriptions fell by 7,000 quarter-on-quarter – with retail losses of 13,000 improving on the 21,000 lost in the previous quarter, displaying continued progress driven by Eircom’s bundling strategy, while the wholesale fixed line customer base grew by 6,000 in the quarter. The mobile customer base grew by 8,000 from the same quarter in 2013 and by 1,000 from the previous quarter, with the total base reaching 1.065 million. The post-paid mobile segment grew by 60,000 customer accounts y-o-y with 14,000 net additions in the quarter. Mobile revenue increased by 2% compared to the quarter ending 30 September 2013 – the second consecutive quarter of growth.

Ireland, eir