eircom mobile business improves earnings margins, as group revenues fall marginally

eircom's mobile business generated its highest EBITDA margin in four and a half years in the three months to end-March--the operator's fiscal third quarter 2015--as revenue grew 5 per cent year-on-year.

The operator's mobile earnings before tax depreciation and amortisation (EBITDA) hit €19 million ($21.6 million) during the quarter, some 11.6 per cent higher than in the same period of 2014 and enough to give the company an EBITDA margin of 22 per cent in the recent period.

Mobile revenue for the quarter was €87 million, and the operator added 9,000 postpaid subscribers during the period.

Total group revenue in the January to March quarter fell marginally by 1 per cent year-on-year to €311 million, as the operator benefitted from a rise in sales of triple and quad-play bundles comprising mobile, fixed line, broadband and TV services.

eircom group CEO Richard Moat said the quarterly earnings show that "the business is nearing an inflection point, with fixed line revenues flattening year on year and mobile performance strengthening."

The CEO added that eircom group "is firmly on track to achieve its financial targets for the year" on the back of stable revenues and a "continued focus on cost control".

Close to a quarter (22 per cent) of eircom's subscriber base had opted for TV and mobile bundles by end-March, and the operator said it ended the period with 250,000 LTE (4G) subscribers.

At the same time as announcing its most recent financial results, eircom announced that former KPN executive Huib Costermans will be its new CFO. Costermans takes the role over from Moat, who was CFO prior to his permanent appointment as Herb Hribar's replacement in November 2014.

eircom also appointed Erik Slooten as its CIO. Slooten joins the Irish operator from T-Mobile Czech Republic, where he was regional VP for processes and systems.

Moat commented that both appointments will help eircom "execute on our strategic and operational plans for the business."

For more:
- see eircom group's earnings statement [PDF]
- view the company's appointments notice [PDF]

Related Articles:
eircom grows mobile revenues for third straight quarter, as LTE users take over
Eircom's mobile business puts brakes on group revenue decline
Eircom CEO Hribar stands down
Eircom decides against an IPO for now
Eircom agrees long-term network sharing deal with Three Ireland

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