Eircom’s earnings continued to slide in the first calendar quarter, despite the issue of a €350 million senior bond, and reductions in net debt and operating costs.
The Irish incumbent’s EBITDA fell €15 million year-on-year to €122 million in its fiscal 3Q12, as a rise in its mobile EBITDA was offset by a loss in its fixed line business. Total revenue dropped 10% to €338 million, while operating costs of €153 million are down €7 million.
Senior executives say the results are inline with their expectations, and note the firm remains in transition as it attempts to reduce churn and costs.
“While revenues continue to decline, we are making progress to address the underlying fundamentals of the business,” says chief financial officer, Richard Moat. In addition to the bond issue and debt reduction, the firm also diversified its sources of funding, and sold its PhoneWatch subsidiary, Moat notes.
Chief executive, Herb Hribar, says trading conditions in Ireland remain tough “due to increased competition and the macro economic climate,” but notes that the firm is making progress in its bid to “stem our customer losses, and revenue decline.”
While Eircom currently appears heavily reliant on its recently launched fiber services to achieve its goals, Hribar says its triple-play bundles will soon be quad-play, with the telco targeting September for the launch of 4G services.