eir reports revenue decline for FY20, but EBITDA rises as operating costs are reduced

3 Sep 2020

Ireland’s eir has revealed a 2% drop in revenue for its financial year ending 30 June 2020, while noting it had seen a similar year-on-year decline in its fourth quarter, as growth in turnover from broadband, data and post-paid mobile services was more than offset by a reduction in revenues from traffic, sport, and pre-paid services, as well as ‘by the impact of a competitive retail broadband market and regulated wholesale pricing’.

For the three months under review, the operator generated revenues of EUR300 million (USD356 million), down from EUR305 million in 4Q19, while full year revenues totalled EUR1.224 billion, compared to EUR1.249 billion in FY19. The company also highlighted a 7% year-on-year reduction in operating costs for FY20, to EUR379 million from EUR406 million in the previous fiscal year, which helped to boost a 4% annualised increase in EBITDA, to EUR600 million. Meanwhile, full year capital expenditure totalled EUR265 million, down 2% y-o-y.

In terms of operational indicators, eir reported a broadband subscriber base of 962,000 at 30 June 2020, up from 944,000 a year earlier. Of the total, 459,000 were retail subscribers, down from 464,000 at mid-2019, with the remaining 503,000 (Jun-19: 480,000) being wholesale connections. eir also took the opportunity to highlight the fact that its fibre network now passes two million premises, up from 1.9 million at mid-2019. Moreover, it also confirmed that 576,000 premises were passed with fibre-to-the-home (FTTH) technology at mid-2020, up from 375,000 a year earlier.

In the mobile arena, eir reported 1.156 million users at end-June 2020, a figure representing strong growth from the 1.023 million reported a year earlier, driven by MVNO sub-brand GoMo’s ‘continued strong market performance’. More than 200,000 subscribers were said to have signed up to the MVNO by the end of the reporting period; the brand was launched in October 2019. eir also confirmed that its 5G network now covers 29% of the population, with infrastructure now available in 21 towns and cities, while it said its 4G network boasted 99% population coverage and ‘over 95%’ geographic coverage.

Ireland, eir, eir Mobile, GoMo (Ireland)