Revenue dips at Eir as exceptional charges hit profits

Revenue at Eir fell last year as an increase in data services, traffic and postpay revenue was offset by a decline in traditional access, content and prepay figures.

Revenue for 2022 was €1.23 billion, down €2 million year on year, while adjusted earnings before interest, tax, depreciation and amortisation (ebitda) was €652 million, representing a €10 million decline. Amortisation charges rose 13 per cent, or €5 million, to €43 million as a result of the acquisition of Evros Technology Group in the prior year.

Pretax profits were €63 million for the year, down from €351 million a year earlier as exceptional items primarily relating to the sale of the fibre business and assets to the group’s subsidiary with InfraVia, Fibre Networks Ireland Limited, resulted in a charge of €208 million. Some €25 million of that charge is related to restructuring programme costs, €5 million for group reorganisation costs and €1 million for Covid-19 related costs.

Eir said the results were in line with expectations.

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The company said its fixed-line division, which includes broadband, voice and data services for consumers, business users and wholesale customers, was largely stable in terms of revenue for the year. It contributed 74 per cent of revenue before inter-segment eliminations for 2022, driven by a 14 per cent increase in other products and services revenue, a 3 per cent increase in voice traffic revenue, offset by a 10 per cent decrease in access revenue.

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ComReg figures at the end of December put Eir’s share in the Irish retail and wholesale fixed-line market at 40.1 per cent, based on revenue.

Eir said its fibre broadband customer base increased by 2 per cent year on year to 844,000 customers. Two million premises are now passed by the fibre network, with more than a million able to access gigabit fibre-to-the-home network as of February 2023.

Eir’s mobile business, which saw 1 per cent growth over the year, accounted for 26 per cent of total revenues. Eir has a total of 1.316 million mobile customers. Its postpay mobile base increased by 10 per cent to 982,000 customers, with multiplay bundling accounting for 45 per cent of Eir fixed households, a rise of five percentage points year on year.

Total accrued capital expenditures were €286 million, which included network investment of €247 million.

“We will continue to make significant investments in our infrastructure, to ensure we have world-class technologies and the highest-quality connectivity available to our customers,” said Eir chief executive Oliver Loomes. “Enhanced technologies like Eir’s 5G network is now available in 530 towns and cities across Ireland and the roll-out of our 5G network will continue bringing ultra-fast data speeds to even more homes and businesses.”