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Eircom turnover slips, dividend offered

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24-11-2004 5:44pm

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dahamsta

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Eircom turnover slips, dividend offered
Wednesday, November 24 2004
by Matthew Clark

Ireland's incumbent telecoms firm, Eircom, has posted another decline in turnover, but higher core profits and cash flow, allowing it to pay an interim dividend.

The former monopoly said on Wednesday that turnover in the six months to the end of September amounted to EUR400 million, a fall of 4 percent from the same period a year ago. The decline was blamed on lower prices for its products and ever-fiercer competition in the Irish telecoms market.

However, Eircom also showed that it has responded to the deterioration in its business by streamlining its operations, which has boosted the company's core profits. In its results, the firm said that EBITDA earnings, excluding restructuring, pension amortisation and other exceptional costs, grew by 3 percent in the six months to EUR309 million, or EUR0.07 per share. Meanwhile, operating profit before restructuring costs and exceptional operating costs was up 52 percent to EUR128 million in the six-month period, with related operating margins growing to 16 percent from 10 percent a year earlier.

Core operating costs declined by 1 percent in the half-year to EUR310 million, as Eircom's employee numbers fell by over 400 in the six months, and by more than 800 since September 2003. Importantly, net cash inflow in the six months grew to EUR221 million from EUR205 million last year.

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