Eircom CEO says mobile business a 'key contributor' to group EBITDA rise in year to end-June

Eircom's mobile business generated its highest EBITDA margin in five years in the company's fiscal fourth quarter, which covers the three months to end-June, as the business generated healthy increases in EBITDA during the quarter and in the full fiscal year.

The Irish operator achieved an EBITDA margin of 25 per cent during its fourth quarter and increased EBITDA itself by 67 per cent year-on-year to €22 million ($24.7 million). Figures for the full year show a similar (62 per cent) rise in EBITDA to €58 million, and a €5 million year-on-year rise in mobile revenue to €352 million.

Mobile subscriber numbers grew from 1.05 million at end-June 2014 to 1.08 million at end-June 2015, with the proportion of post-pay users growing by 49,000 year-on-year to 475,000. That increase offset a decline in pre-pay user numbers, which fell by 21,000 year-on-year to 608,000 at end-June 2015.

The operator reduced churn in its post-pay user base from 19.2 per cent at end-June 2014 to 15.5 per cent in the recent period, while pre-pay churn fell from 62.1 per cent to 57.5 per cent. Contract subscribers' ARPU fell slightly from €38 at end-June 2014 to €37.70 in 2015, while pre-pay ARPU declined marginally from €15.70 to €15.30.

Richard Moat, eircom Group CEO, said the strong performance of the company's mobile division, along with "encouraging" uptake of its TV services, "were key contributors" to a 3 per cent rise in overall EBITDA to €481 million during the fiscal year.

The operator "passed a symbolic milestone in June, recording year-on-year revenue growth in the quarter for the first time in seven years," Moat added, attributing the rise to the performance of eircom's "fixed and mobile segments."

Fiscal fourth-quarter group revenue increased 5 per cent year-on-year to €325 million.

Moat revealed that eircom will rebrand in the coming weeks, in a move he said "underlines the extent to which the company has evolved our commitment to Ireland and our ambition for the future."

For more:
- see eircom's earnings statement
- view the operator's full earnings presentation (PDF)

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