Friday, 22 September 2017

Eir full-year earnings rise on flat revenues

By Mary Lennighan, Total Telecom
Wednesday 13 September 17

Irish operator reports 4% EBITDA growth in year to 30 June as operating costs fall

Eir posted earnings growth in its most recent full year, backed by a small uptick in underlying revenue, but the figures were not helped by its performance in the fourth quarter. The Irish telco reported EBITDA of &euro…

Eir posted earnings growth in its most recent full year, backed by a small uptick in underlying revenue, but the figures were not helped by its performance in the fourth quarter.

The Irish telco reported EBITDA of €520 million in the year to the end of June, up by 4% compared with the previous year, while Q4 earnings came in at €146 million, up by just 1% year-on-year.

Underlying revenue, excluding mobile termination rate and currency effects, fell by 2% in the fourth quarter to €329 million, while reported revenue for the period was down by 4% to €323 million.

However, for the full year, underlying revenue was up by 1% to €1.3 billion, while reported revenue slid by 1%.

The operator brought full-year operating costs down by 5% to €490 million and shed 6% from its costs in Q4 to €111 million.

"The results achieved are in line with expectations and the guidance issued at the beginning of the financial year," Eir said.

The telcos numbers are driven by its fixed-line business, which posted full-year turnover of €993 million, flat compared with the previous year. Fixed EBITDA grew by €22 million to €452 million.

Eir said its total broadband base grew by 42,000 during the year to 896,000, but all the growth was driven by the wholesale market; its retail connections fell by 5,000 to 444,000.

On the mobile side, the operator saw a small increase in customers; its base stood at 1.06 million at the end of June, up by 1,000 over 12 months.

Full-year mobile revenues and EBITDA both declines.

In July Eir announced plans to rebrand its mobile unit from Meteor to Eir.

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