Eir revenues increase by 2% as more mobile and broadband customers sign up

Revenue at telecoms company Eir grew by 2 per cent to €311 million in the first quarter, according to its latest trading update. “The revenue uplift is driven mainly by mobile growth within our consumer business,” it said.

The company said it had increased broadband and mobile customers by 148,000 year-on-year on the back of expanding its 5G mobile and fibre broadband networks.

“This growth is supported by our capital investment of over €1 billion since 2018,” it said, noting it was continuing to invest €250 million a year in its infrastructure.

The latest figures show earnings before interest, tax, depreciation and amortisation (ebitda) rose by 7 per cent to €137 million even as operating costs rose by 4 per cent to €109 million. The company said non-pay costs increased by 7 per cent due to an increase in accommodation and marketing costs while pay costs remained stable.

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Customers using Eir fibre broadband services totalled 873,000 at the end of the quarter, representing an increase of 3 per cent or 28,000 customers year-on-year.

Eir said 92 per cent of the group’s broadband base was now connected to its fibre network, which represented a 42 per cent penetration of total premises passed with Eir fibre broadband.

The group’s mobile customer base stood at 1.45 million, an increase of 8 per cent or 112,000 year-on-year.

Eir chief executive Oliver Loomes said: “We have started the year on a strong note with Eir delivering a solid first quarter, which is a direct result of our commitment to investing in and expanding Ireland’s leading fibre and mobile networks.

“Our customer base has grown by 148,000, driven by the enhanced quality and expansion of our 5G mobile and fibre broadband networks,” he said.

The company paid a dividend of €50 million during the period, up from zero 12 months earlier. Companies controlled by French businessman Xavier Niel own close to two-thirds of the business, with the remainder held by US funds Anchorage and Davidson Kempner.

[ Eir co-owner Iliad holds off on triggering option to take control ]

Last month, a spokesman for Mr Niel’s Iliad Group said it had no immediate plans to exercise an option to take a controlling stake in Eir.

Such a move would increase the debt burden of the wider Iliad Group, which was listed in Paris before Mr Neil took it private in 2021. Iliad acquired a 31.6 per cent stake in Eir six years ago, and Mr Niel’s family office NJJ acquired a further 32.9 per cent stake.

Iliad has a so-called call option that entitles it to acquire 80 per cent of NJJ’s stake between this year and next.

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