Telecoms operator Vodafone Ireland has narrowed its operating losses despite soaring energy costs and ongoing investment in the business.
The company said it made an operating loss of €21.8 million in the 12 months to the end of March compared with €26.3 million a year earlier. Pretax losses were €28.4 million, slightly improved from the €29.8 million loss a year ago.
The mobile phone group said revenue was up almost 5 per cent, with total turnover of just over €981 million. That compared with €936.5 million in 2022, with the rise attributed to strong growth in the company’s mobile and fixed line customers.
Inflationary pressures were blamed for the operating loss, with energy costs rising significantly, the company said. Operating costs rose 10 per cent year-on-year, with networking operating costs and energy prices behind the rise.
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Adjusted earnings before interest, tax, depreciation and amortisation were €149.9 million, down from €155.1 million in 2022.
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Vodafone said the business was resilient but that it would remain cautious. The company is investing in its infrastructure in a bid to future-proof the business and generate significant earnings in future years.
It has spent €300 million on its network in the past three years, and plans to spend another €500 million over the next five years to improve service reliability, support fast 4G and underpin 5G services. It also plans to invest €3 million in upgrading its retail outlets.
Investments last year included a phased programme to modernise its network and move its 3G service to the 4G network, improving coverage and connectivity for customers. It said it is also investing in the Gigabit Hub initiative with ESB through Siro, and providing SMEs with business support tools.
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The company said it had also spent more than €48 million securing 160Mhz of spectrum across four bands in a deal with a 19-year term.
Vodafone also struck a wholesale network access deal with Virgin Media Ireland that, it says, will allow the telecom operator to offer fixed line services through Virgin Media’s fibre network.
“Vodafone Ireland delivered a positive performance in the last financial year, and continues to lead in consumer and business markets,” said Amanda Nelson, chief executive of Vodafone Ireland.
“The €500 million investment we announced earlier this year is a testament to our commitment to our customers, our networks and Ireland. We are not only investing in our network’s modernisation programme but investing in the future of Ireland’s digital economy, paving the way for a new era of connectivity.”
Vodafone Ireland said it has more than 2.4 million customers.
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