Esat Telecom's record data for fourth quarter were expected

ESAT Telecom has published record fourth-quarter data yesterday, with gross billings for fixed lines up more than 100 per cent and 313,000 new mobile customers. Analysts said the preliminary results - which do not include profit and loss accounts - were impressive, but in line with expectations.

The company, currently the subject of a hostile takeover bid from Norwegian state telecommunications firm Telenor, said its fixed-line revenue for the three months to the end of December was £24.5 million, up 28.6 per cent on the third quarter. Gross billings were also £24.5 million, up 26.5 per cent on the third quarter, and 101 per cent on the 1998 period.

The company said the number of corporate customers rose by 38 per cent to 12,720, and annual billable minutes up almost 150 per cent over 1998 to more than 500 million. More than half of fixed line gross billings revenue came from higher-margin non-switched market segments, Esat said.

"We have had an excellent fourth quarter. The growth rates in our businesses, the targets we have surpassed and our energetic and highly focused acquisition programme clearly demonstrate a path toward continued creation of shareholder value for Esat," said Mr Denis O'Brien, the company's chairman and chief executive.

In his comments, which were arguably aimed as much at Esat's shareholders as the wider business community, Mr O'Brien stressed the current position of the company.

"Recent acquisitions and the utilisation of our own fibre optic network have transformed Esat from a provider of basic telecoms services into a company focused on the data and the burgeoning Internet and e-commerce markets, capable of providing broadband applications to a wide range of corporate and consumer customers," he said.

The Republic was at the crossroads of the development of e-commerce, as a significant number of major US technology multinationals had chosen to set up their European headquarters here, he said.

"Esat has the technology and the network to take full advantage of this revolution," he added.

The company said it had achieved its first year target of over 25,000 residential voice customers.

Subscribers to the Esat Digifone mobile phone network, half of which is owned by Telenor, were up 23 per cent on the previous quarter, at 552,000.

The company said its "Speakeasy" pre-paid mobile phone product, launched just over a year ago, had been "a phenomenal success", and was now the main area of mobile growth. Prepaid customers rose from 41,000 at the end of 1998 to 304,000 one year later.

Esat said the construction of its network was now almost complete, with 1,823 kilometres finished by the end of December. All of the Republic's major cities have been connected to the network since early in the third quarter, the company said. The more remote parts of the network were now being completed and would be operational by the spring, the company added.