Revenues up 3% to €321m during Q3 at telecoms giant

Finance | Fri 29 Apr | Author – Business & Finance
Richard Moat eir
Richard Moat, CEO of eir speaks during an event organised by Business & Finance

Irish telecoms company eir has reported a rise in revenue and earnings for the third quarter and nine months ending March 31st 2016.

Revenue in the quarter of €321m increased by 3% compared to the corresponding prior year period, while year to date revenue of €974m increased by 4% compared to 2015 and operating costs (excluding storm costs) for the quarter ended March 31st 2016 were €128m.

During the quarter, one-off costs of €5m were incurred in relation to repairing the network following extreme flooding during the winter months.

The total group broadband customer base was 836,000 at March 31st 2016, growing by 19,000 quarter on quarter and 70,000 compared to the prior year period.

Wholesale broadband connections grew by 23,000 during the quarter and 79,000 compared to the prior year quarter, bringing the total wholesale broadband lines to 389,000.

A total of 394,000 customers were using eir’s fibre-based high-speed broadband service at the end of the quarter, representing growth of 36,000 customers during the period and 152,000 since March 31st 2015.

This represents 47% of the group’s broadband customer base and a 28% penetration of fibre premises passed.

Commenting on today’s announcement, Richard Moat, CEO, eir, said: “Quarter three results are in line with expectations and demonstrate a continuation of the positive momentum we have seen in recent quarters. Our fibre rollout continues at pace and remains on target to reach 1.6 million premises by end of June 2016 and over 80% of Irish premises as quickly as possible. We have commenced our rollout of high-speed broadband to 300,000 premises in rural Ireland, and expect to pass the first 100,000 of those premises by the end of the calendar year.”

He continued: “We are fully engaged in the Government’s National Broadband Plan and see ourselves as central to supporting Ireland’s digital future. We submitted our pre-qualification questionnaire at the end of March and we will continue to fully participate as the tender progresses. The acquisition of Setanta Sports Ireland is one of the most significant milestones in our continuing turnaround.”

Huib Costermans, CFO, eir, added: “We are on track to meet our full year outlook despite incurring €5m in one-off costs to repair faults on our networks caused by unprecedented wet weather during the winter months. Other positive news included the outcomes of our recent credit rating reviews by Moody’s, Standard and Poor’s and Fitch.”