Mobile network Three Ireland said revenue declined and earnings fell as the overall macro environment remained challenging.
The group’s results for 2023 show the Irish arm of the business generated €615 million in revenue for the 12 months, down 1 per cent from the €620 million in 2022. Earnings before interest, tax, depreciation, and amortisation (ebitda) were down 11 per cent to €155 million, as inflation and increased energy costs resulted in an additional €21 million in costs. Margin growth for the year was €2 million, the company said.
Customer acquisition costs fell to €88 million for the period, down from €103 million a year earlier, and handset revenue was also lower over the year.
Despite the decline in overall revenue, the telecoms company has seen growth in its business in the past year. Three said it increased its customer base to more than 4.4 million in the year, bringing its overall share of the Irish market to almost 46 per cent.
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That growth was driven by Three’s contract customers, which increased by 17 per cent year-on-year or 700,000 customers, and the company’s growth in the Internet of Things (IoT) sector. Three said its current market share in the IoT sector stands at more than 70 per cent.
Simon Henry, chief financial officer of Three Ireland, attributed the growth to the roll-out of its 5G network, which the company has invested heavily in over the past few years.
The 5G network is seen as a critical component in connecting devices for more advanced functions, such as autonomous cars or high-tech factories that can inform engineers when they need maintenance.
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The year also saw continued investment in the network and spending on energy-saving initiatives, which the company has implemented in a bid to protect against future shocks in electricity prices. In total, Three spent €95 million in capital expenditure, bringing the total spent since 2015 to €859 million.
“Three Ireland’s financial performance for 2023 was satisfactory in light of the macro environment challenges which impacted on operating expenditure, including inflationary and energy price increases,” said Mr Henry.
“Within this environment, the company continued to increase its gross margin by €2 million in 2023 to €462 million.”
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