Eircom revenue down by €174m
Eircom has posted double digit falls in revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) for the year to the end of June.
Revenue was down by 10 per cent (€174 million) to €1.51 billion during the year and EBITDA decreased by €104 million (16 per cent) to €542 million in the same period.
“The performance of the business continues to decline, but this was in line with our expectations,” eircom group chief executive Herb Hribar said.
“We must do more to retain our customers, stabilise our revenues and grow our profitability.”
The group recorded growth of 4 per cent in its mobile customer base to more than 1.07 million subscribers. Growth was driven by strong performance in post-pay markets, resulting in 40,000 mobile additions.
Its cohort of mobile customers who use smartphones increased from 23 per cent in June 2011 to 37 per cent in June of this year. Eircom said mobile revenues continued to decline for the year but the fall was in line with wider market trends.
The group lost some 108,000 (10 per cent) of its fixed line customers, with its base falling to 999,000, and 24,000 or 5 per cent of its retail broadband customers, which totalled 461,000 at the end of June.
“The Irish telecoms market is witnessing intense competition from other operators and customers continue to demand better value,” Mr Hribar said.
“Eircom will do more to fight for, retain existing customers and even win back former customers.”
Eircom reported annualised savings of €69 million, down 7 per cent.