Eircom earnings dip, Meteor revenues rise

Eircom earnings fell 2 per cent fall during its fiscal first quarter although there was a strong performance by its mobile division Meteor.

Overall earnings before interest, taxes, depreciation and amortisation (Ebitda) totalled €169 million. Earnings from its fixed line division were, after adjustments and management charges of €3 million, €5 million lower at €140 million than the same period last year, eircom said in a statement this morning.

Meteor earnings grew by 2 per cent to €29 million, while revenues rose 9 per cent to €126 million. During the period the number of Meteor customers rose to over 1 million, up 94,000 on the same quarter in 2007.

Group first quarter revenues over the period were almost unchanged at €513 million compared with the same period last year.

Eircom is controlled by Babcock Brown Capital (BCM), a satellite fund of Australian investment group.

Over the quarter eircom DSL broadband customers rose by 21,000 to bring its retail and wholesale DSL customer total to 614,000, a 25 per cent rise over the last 12 months.

The telecoms company said it was testing its 3G Network and planned to launch commercial mobile broadband early next year.

CEO Rex Comb said the worsening economic conditions had impacted on the company during the first quarter.

Eircom said last night it was "extremely disappointed" not to win a contract for the Government's National Broadband Scheme (NBS).

This scheme, which for which mobile operator 3 Ireland has been selected as "preferred tenderer, will subsidise the delivery of broadband to areas of the country currently without a service.

While the contract value was not released last night Budget 2009set aside €45 million in capital funding for communications infrastructure.

Eircom said its bid would have delivered geographic coverage and speeds "which exceeded that required by the Government".