Mobile group O2 Ireland post sharp rise in profits

Turnover for the period were €370 million, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose from…

Mobile phone company O2 Ireland today reported operating profits of €96 million for the six months to the end of September, an increase of 70 per cent on the same period last year. The company said its customer base was marginally up at 1.27 million.

Turnover for the period were €370 million, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose from €114 million to €147 million.

O2 Ireland's parent company the British-based mmO2 reported its first pre-tax profit today alongside a 13 per cent rise in customer numbers, though it forecast toughercompetition in the second half.

Celebrating mmO2's second birthday as an independent firm,chief executive Mr Peter Erskine told reporters there was now goodmomentum after the shaping up of a business that most analystshad seen as merely an inevitable takeover target.

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The company reported today a strong rise in underlying earnings and a 13 per cent increase in customers to 19.2 million, although it forecast tougher competition in the second half.

Celebrating its second birthday as an independent firm, the company, which owns the rebranded Digifone mobile network in Ireland, reported its first pre-tax profit and a drop in debt to £494 million sterling - below the debt level passed on by BT Group Plc when mmO2 floated on the stock market.

First half earnings before interest, tax, depreciation and amortisation (EBITDA) rose to £621 million, up from £387 million last year and in line with analysts' forecasts. Revenue rose 21 per cent to £2.68 billion, as expected.

Average revenue per user over the 12 months to September increased to £259 from £254 the previous quarter, while German ARPU rose to €354 from €348.

In Britain and Germany, EBITDA margins were largely as expected, rising to 29.2 per cent and 15 per cent respectively. The company said it was on track to hit a year-end 30 per cent EBITDA margin target in Britain.