Eir second quarter results show continued growth in broadband subscriptions
Eir second quarter financial results released today showed a 3% decline in revenue year-on-year to €313 million. Earnings before tax increased 4% to €147 million, while operating costs of €95 million represented a year-on-year decrease of 9%.
Broadband subscription rose 1% for the quarter to 947,000. The telco also reported 1.9 million premises passed with fibre, 455,000 of which are capable of receiving fibre-to-the-home connectivity – a year-on-year increase of 48%.
The launch of budget mobile carrier brand GoMo drove a 9% increase in mobile customers to 1.137 million. Subscriptions to the Eir TV service customers declined 6% (5,000) to 75,000.
Carolan Lennon, eir chief executive officer, said: “Our €1 billion capital investment programme continues to deliver very real improvements for our customers, bringing superfast broadband to their homes and businesses, transforming their mobile experience on Ireland’s largest 5G network, and bringing to market revolutionary new services such as GoMo and eir TV.
“Our next generation gigabit fibre network is now available in 28 towns across Ireland, with over 60,000 premises passed already and more homes and businesses in urban and suburban Ireland being passed each week, with the first customers on the new network already enjoying TV, connecting with friends, and downloading their favourite films and music all at superfast gigabit speeds.
“The rollout will ramp up considerably in the coming months, reaching a further 20 towns by April. Ultimately this ambitious project will stretch to 1.4 million homes and businesses and once completed, eir fibre will cover approximately 84% of all premises in Ireland.
“Our 5G network, by far the largest of any operator in Ireland, has now expanded to 20 towns and cities across the country, covering over 25% of the population. 5G is providing our customers with unrivalled data speeds and network reliability, with peak speeds of over 1Gb/s. Most significantly, our 5G network will substantially enhance and expand business connectivity across the country.”
“GoMo, Ireland’s newest and best value mobile network, launched four months ago and already has seen well over 100,000 customers sign-up in that time. GoMo’s simplicity and ease of use continues to attract customers, with no complex bundles and customers knowing exactly what they are paying every month, putting an end to bill-shock and offering customers an incredible deal with more value for less.”
Stephen Tighe, eir chief financial officer, said: “Eir’s performance in the second quarter was in line with expectations. Revenue declined by 3% driven by intense market competition as well as regulated wholesale pricing. Despite these headwinds, EBITDA for the quarter increased by 4%, driven by further streamlining of the cost base which was reduced by 9% year-on-year.
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