Losses fell by 73 per cent to €42 million at telecoms firm Esat BT last year, according to results issued yesterday.
Esat BT's chief executive, Mr Bill Murphy, said the company was on track to break into profit over the coming 12 months, having cut its net losses from €500 million two years ago.
Last year's reduction in losses came as revenues climbed by 20 per cent to €289 million and costs declined by 18 per cent to €73 million. Earnings before interest, tax, depreciation and amortisation - a measure which offers an indication of a firm's cash position - grew from €20 million to €38 million over the year.
"It's quite a transformation," said Mr Murphy. He went on to reiterate the firm's commitment to growing in both the residential and corporate markets in the Republic.
Esat BT threatened to review its participation in the residential market twice over the past two years because it felt the regulatory environment was stifling expansion.
Mr Murphy yesterday took a starkly different stance, lavishing praise on both the telecoms regulator, Comreg, and the Minister for Communications, Marine and Natural Resources, Mr Ahern, for their "interventionist" stance on the communications market.
"We've got a Minister and a regulator who are prepared to intervene to establish markets," Mr Murphy said.
He was particularly welcoming of Comreg's move to allow players other than Eircom to enter the line-rental market as well as offering call services.
Esat BT is planning to launch its "single billing" service in the autumn. "The consumer business has been challenging and difficult but ... the business has stabilised and is starting to grow."
Esat BT has about 160,000 residential internet customers and 60,000 house customers.
It remains a bigger player in the business market however, having won sizeable contracts such as the management of Bank of Ireland's networks over recent months.
Mr Murphy said yesterday that he was "very optimistic" that the Government would soon opt to give its €100 million annual telecoms and internet business to an operator "other than Eircom".
He said it would make consumers more "comfortable" with seeking alternative telecoms providers if the Government did it first. The firm will seek to build its presence by launching the Republic's first hosted voice-over-internet protocol service.
