eir records 3% y-o-y revenue decline in 1Q21, despite broadband and mobile gains

17 Nov 2020

Ireland’s eir has published its financials for the quarter ended 30 September 2020, reporting what it called ‘consistent, solid results in line with expectations’. For the period under review, the carrier reported revenues of EUR296 million (USD351 million), down 3% year-on-year, with the company noting that growth in broadband, managed and data services revenues and bundling had been offset by a reduction in ‘traditional access’, voice and pre-paid revenues. In terms of revenue splits, eir confirmed that the lion’s share – EUR221 million (down 4% y-o-y) – was generated by fixed line services, while mobile revenues declined by 2%, to EUR81 million. In addition, adjusted EBITDA of EUR154 million for the first quarter of its current fiscal year (which ends 30 June 2021), marked a 2% drop from the corresponding period a year earlier, while operating costs fell 7% on an annualised basis to EUR142 million. Net profit stood at EUR214 million.

In operational terms, eir highlighted ‘further, solid broadband growth’, with accesses climbing by 2% in the year to 30 September 2020, to reach 967,000. Of the total, 764,000 broadband users were accessing their service via fibre-based technology, up from 717,000 at September 2019. Additionally, eir confirmed its fibre footprint covered 2.0 million premises at the end of the reporting period, up from 1.9 million a year earlier, while it noted specifically that its fibre-to-the-home (FTTH) rollout had continued to progress, reaching 674,000 premises at 30 September 2020, up 68% y-o-y.

In the mobile sector eir reported a subscriber base totalling 1.18 million, up 16% y-o-y, with post-paid accesses accounting for 791,000 of that figure (Sep-19: 567,000). Of note, the operator revealed that its GoMo sub-brand continues to perform strongly, having now attracted more than 250,000 subscribers. Meanwhile, the group also issued an update on its 5G rollout, confirming that its network now covers 45% of the population, across 106 towns and cities.

Commenting on the company’s quarterly performance, Stephen Tighe, eir’s CFO, said: ‘Our performance in the first quarter remained solid and consistent with previous quarters, with continued EBITDA growth and further increases in our fibre, mobile, TV and bundled customer bases, despite the challenges faced from the external environment as the impact of COVID-19-related restrictions remains, with measures strengthening recently as Ireland became the first country in Europe to re-enter lockdown … We have continued to face these challenges while successfully focusing on our strategy and objectives, with our EUR1 billion investment to roll out fibre broadband and 5G, as well as the expansion of 4G and upgrade of our IT stack, all continuing to progress at pace in the first quarter.’

Ireland, eir, eir Mobile