Meteor profits fall by 25% to €37.2m

RESTRUCTURING COSTS totalling €2.7 million at Ireland’s third largest mobile phone operator, Meteor, last year contributed to the company’s pre-tax profits dropping by 25 per cent to €37.2 million.

Accounts just filed by Meteor Mobile Communications Ltd show pre-tax profits dropped from €49.7 million to €37.2 million to the end of June last year.

The Eircom-owned company sustained the drop in profits in spite of the firm increasing revenues by 2 per cent, from €480.9 million to €491.2 million.

The filings show the biggest factors behind the drop in profits was a 95 per cent rise in amortisation or depreciation of intangible assets to €18 million, and depreciation costs rising by 21 per cent, or €11.6 million, to €66 million.

In their report, the directors pointed out that earnings before interest, depreciation and amortisation grew by 8 per cent, from €115.8 million to €125.6 million, during the year.

This was attributable to the cost-reduction programme implemented during the year, they said.

The filings show the company’s operating costs last year reduced from €365 million to €362.5 million.