02 Ireland profits surge 14% to €130m

Profits at mobile operator O2 Ireland grew by 14 per cent to almost €130 million in the six months to the end of September, the company said yesterday.

Figures released by the UK-based multinational show that its Irish operating profit for the six month period, the first half of its financial year, was €128 million. That was a 14.3 per cent increase on the €112 million operating profit it recorded during the same period in 2004.

O2 Ireland said yesterday that total revenues in the Republic were €475 million during the period, a 14 per cent increase from €418 million in the corresponding six months last year.

Earnings before interest, tax and write offs for depreciation and amortisation (Ebitda) grew at a similar rate, to €177 million this year from €159 million in 2004.

The company said that its Ebitda margin was down 0.4 per cent to 37.5 per cent as a result of increased investment in its network and the rising cost of winning new customers.

The group grew its customer base to 1.57 million from 1.45 million, an 8 per cent increase. O2's service cost each customer an average of €572 in the year to the end of September.

The average customer bill across the O2 group for the same 12-month period was close to €403, which was level with the year to the end of September 2004. The Republic's contract customers (those who get monthly bills rather than using the pre-paid system) paid an average of €1,155 each in the year to the end of September, compared with €1,078 in 2004.

At group level, the average contract customer's bill was €778 for the same year, an increase of around €1.40 on 2004. Prepaid O2 Ireland customers paid an average of €360 each for their services during the same period, a €1 increase on 2004. The group average remained unchanged €203.

O2 said that an increase in the number of business customers it was signing up was largely responsible for the higher than average bills paid by Irish customers. The company said that Irish customers used the their mobiles more. On average, their calls totalled 215 minutes a-month in the year to the end of September, compared to 144 minutes for UK customers and 114 minutes for German customers.

O2 Ireland customers sent a total of 720 million text messages during the six months to the end of September, a 12 per cent increase on the 644 million messages they sent during the same period in 2004.

Data (services such as text and internet) provided 22 per cent of O2 Ireland's turnover during the six-month period, compared with 20 per cent a year earlier. Data accounted for €126 of every monthly bill. The company invested €80 million in its business and network during the six month period, a 32 per cent increase on 2004.

From the beginning of 2006, it plans to cut 8 per cent off the price it charges other networks for calls from their customers to its subscribers.