Eircom Drops 8.5% of Revenues

EircomEircom has reported an 8.5% drop in its revenues for the year to the end of June, to €1.8bn ($2.27bn), and “net debt remains very high” – Paul Donovan, Eircom boss admitted.

Eircom’s adjusted earnings before interest, tax, depreciation and amortization were €669m ($845.2m), down 3.3%.

Eircom boss Paul Donovan said: “Today’s results highlight…the challenges that remain to return Eircom group to profitable growth.”

He also added that management had begun a three-year program to stabilize the group’s financial performance and “fundamentally transform the organization” and warned: “Further cost savings must be found and we aim to reduce annual labor costs by a further €90m ($113.7m) over the next three years.”

Staff numbers have fallen by more than 1,500 since March 2009. Discussions about the up-coming cost savings have begun with Eircom staff union representatives.

The company lost 70,000 landline customers in the year. The number of broadband and mobile customers continued to grow, but price reductions meant revenue and profits at the Meteor mobile business fell.

Eircom also confirmed it planned to introduce an Eircom-branded mobile service this year.

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