Esat Telecom's turnover and gross billings soared in the first quarter of the year, but losses climbed too. The company said the quarter had seen strong performance by Esat Digifone and significant progress in a number of areas of its business.
Analysts said the results were generally in line with expectations, but added that mobile growth was particularly impressive, and that accounting losses were higher than anticipated due to currency fluctuations.
Esat said revenue for the three months to the end of March was £12.4 million (€17 million), a rise of 192 per cent on the £4.3 million for January to March 1998. Gross billings increased 129 per cent to £13.5 million, and losses more than doubled, to £28.4 million from £11.1 million.
Esat Digifone, 49.5 per cent of which is owned by the Esat group, said its revenues for the quarter had almost doubled from the 1998 period, to £40 million, and that it had 302,000 customers at the end of March. The mobile telephone service provider said January to March represented its fourth consecutive quarter with an operating profit.
Esat Telecom's chairman and chief executive, Mr Denis O'Brien, said he was particularly pleased with the growth in customer numbers: "This growth has resulted in the earlier than anticipated requirement to increase the network capacity by the planned installation of a DWDN high-speed network."
The group said its losses were due to continued investment in developing its telecommunications infrastructure, developing new products and services and expanding its customer base.
"The net loss for the period ended 31st March, 1999. . . reflected the effect of the most recent high-yield bond finance and the significant fluctuation in the US dollar to Irish pound exchange rate," Esat added.
Looking forward, Esat said it would soon complete its 1,950-kilometre backbone network, greatly reducing its reliance on Telecom Eireann's infrastructure.
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