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Eircom's first quarter revenues down 9%

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  • 25-11-2009 11:27am
    #1
    bealtine
    Registered Users Posts: 4,051 ✭✭✭


    http://www.rte.ie/business/2009/1125/eircom.html
    Wednesday, 25 November 2009 08:31

    Eircom has reported a 9% drop in revenue for the first quarter ending September. Revenues fell to €468m, while earnings before interest, tax and depreciation slipped less than 1% to €168m.

    The phone company said that its operating costs were 11% lower than last year, which reflected significantly reduced labour costs and other operating expenses.

    Eircom's fixed line revenues were down 9% to €364m due to lower voice traffic and higher discounts for its various offers and bundles.

    Revenues at its mobile arm Meteor were down 6% to €119m due to lower average revenues per user. However, this was partially offset by customer growth, especially in mobile broadband.

    Eircom said its total mobile customer numbers stood at 1,046,000 by the end of September, up 38,000 from the same time last year. 20,000 people signed up to Meteor in the three months to September.

    Its average montly revenue per user was down 8% to €36.02, mainly due to the impact of new call price plans and changes in traffic mix.

    'The operating environment in Ireland remains challenging from an economic, competitive and regulatory perspective,' commented Paul Donovan, CEO of Eircom.

    'Within that context, the group has delivered a set of results which underline the commitement to continued strong cost control,' he added.


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    #2
    bealtine
    Registered Users Posts: 4,051 ✭✭✭bealtine


    http://www.examiner.ie/business/kfaugbeycwey/
    By Niamh Hennessy

    Thursday, November 26, 2009

    EIRCOM says the operating environment in Ireland remains "challenging" as revenues plunged 9% to €468 million in the three months to the end of September.

    The company also reported broadband revenue rose 7% from a year earlier but mobile revenues fell 6% in the quarter.

    The company said cost reduction and improved customer retention will remain "key objectives for the business".

    Earnings before interest, tax and depreciation fell by 1% during its first quarter to €168m. Reduced labour costs saw Eircom cut its operating costs by 11% during the quarter, to €300m, compared with the same quarter a year previous.

    The group’s fixed-line revenues fell 9% to €364m as a result of lower voice volumes and higher discounts.

    Eircom chief executive Paul Donovan said: "The operating environment in Ireland remains challenging from an economic, competitive and regulatory perspective. Within that context, the group has delivered a set of results which underline the commitment to continued strong cost control."

    The company’s mobile division, Meteor, reported revenues of €119m, down 6% on the same quarter in 2008 due to lower average revenue per user (ARPU).

    However, Meteor gained 20,000 new customers during its first quarter. Its total mobile customer numbers stood at 1.046 million at the end of September, which was up 38,000 year-on-year.

    ARPU dropped 8% over the year to €36.02, which Eircom said was largely due to changes in traffic mix and new call price plans.

    Total mobile customers were 1,046,000 at 30 September, up 38,000 in the same time last year. Post-paid customers stood at 146,000, almost 14% of the total.

    The company said it continues to support the process for the sale of Eircom Holdings to STT Communications, which is due to be complete on January 4, 2010.


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