Quarterly earnings stabilise at Eircom

Earnings at Eircom continued to stabilise in the first quarter of its fiscal year, but the company warned it was still facing "significant challenges" from intense competition in the market.

In the quarter ended September 30th, revenue fell by 9 per cent to €323 million, but earnings before interest, tax, depreciation and amortisation fell by only 1 per cent to of €119 million. Operating costs fell by 13 per cent over the period, as part of an extensive cost cutting gplan by the firm that will see a further 1,100 staff leave by the end of the financial year.

"Our first quarter results demonstrate continued stabilisation in our bottom line, with particular progress on cost reductions," chief executive Herb Hribar said. "However, given the continued competitive intensity, significant challenges remain in our turnaround plans for both the consumer and business to business units. We are committed to addressing these challenges in the coming months, by exploiting the new range of products and services now available."

Some of these products and services are the result of investment, with Eircom rolling out a new fibre broadband network, which is on track to pass 700,000 homes and businesses by the end of December. It expects to finish the bulk of the initial rollout by July 2016. Off the back of this, Eircom launched its new TV service in October, Eircom eVision. The firm’s mobile unit has also begun offering next generation mobile services to customers.