Three Ireland narrowed its overall losses last year, but revenues declined as the company continued to be hit by the pandemic restrictions that temporarily closed down offices and stores, reducing sales.
Although active customer numbers at the network rose at 20 per cent last year, bringing the total to 3.4 million, the closure of non-essential retail hampered handset sales and the acquisition of new customers.
Accounts filed for the company show, in total, Three Ireland made a loss of €26.6 million, down from a loss the previous year of €31.4 million. Pretax losses were €20.3 million for 2021, compared with a more than €11 million loss in 2020, and operating profit was €42 million in 2021.
Three sold its tower assets in 2020, which increased its administrative costs for the year from €368 million in 2020 to €380 million, but this was partially offset in decreased interest payments due to the transfer of debts relating to the tower business. Total interest repayments were €62 million last year, down from €69 million in 2020.
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“Our 2021 financial performance was in line with projections,” said Three Ireland chief financial officer Simon Henry. “Despite the impact of the pandemic on sales growth and roaming, margin remained strong, with an overall revenue reduction of 2 per cent to €578 million from €592 million in 2020, with a gross margin reduction of less than 1 per cent to €422 million from €426 million in 2020.”
Gross profit was lower at €421 million, down from €426 million a year earlier, but remained above pre-pandemic levels of €420 million.
The company also continued to invest in its network, spending a total of €114 million on capital expenditure, with €86 million going into its network. That brings the total invested in its networks since 2015 to €820 million.
It continued to roll out 5G services to customers throughout the year, with 890 sites now live. However, overall expenditure was down from €133 million in 2020.
Three Ireland now has a market share of 42 per cent.
