Eir reports first year of annual growth in eight years

Trade

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Eir released its financial results for the full year to 30 June 2016 today showing its first year of annual growth since 2008.

Full year revenue of €1.3 billion represented a €45 million (4%) increase over 2015. Operating costs (excluding storm costs) of €511 million were broadly flat compared to the prior year. EBITDA (excluding storm costs) for the year was €505 million, an increase of 5% compared to the corresponding prior year periods. EBITDA (net of storm costs) for the year ended 30 June 2016 was €500 million, an increase of 4% compared to the prior year.

In the fixed line segment revenue (before intra company eliminations) for the year was €995 million. Fixed line EBITDA of €435 million (before storm costs) represented an increase of 3% year-on-year. Fixed line EBITDA (net of storm costs) was €430 million, an increase of 2%.

Total group broadband customer base of 854,000 at 30 June 2016, showed an annual increase of 72,000. Wholesale broadband connections grew by 78,000, bringing the total wholesale broadband lines to 405,000. The retail broadband base was 449,000.

A total of 429,000 customers were using the telco’s fibre-based broadband service at the end of the year up 148,000 on June 2015.

Mobile
In the mobile segment, EBITDA for the quarter of €26 million increased by €8 million compared to the previous quarter, and €4 million compared to the prior year quarter. Mobile EBITDA for the year ended 30 June 2016 was €70 million which was an increase of €12 million or 21%. Mobile revenue (before intra company eliminations) was €358 million which was an increase of 2%.

The Group mobile customer base stood at 1,060,000 at the end of June 2016. The prepaid customer base decreased by 46,000 during the 12 months to 30 June 2016. However, the higher value postpay customer base has increased by 23,000 over the year. Postpay customers accounted for 47% of the overall base, up 44% on a year ago.

Huib Costermans, CFO eir, said: “We have delivered a very strong set of financial results for the full year and have delivered on our financial guidance. We have also secured a much improved and flexible capital structure and reduced our cost of debt from 5.2% to 4.5%. This was achieved through our successful bond refinancing which resulted in €17 million of interest cost savings, amending our senior debt facility document to align it to market standards and raising a revolving credit facility which allows us to make better use of our cash on balance sheet, while supporting the entry of a new long-term shareholder, GIC. We also welcomed the credit ratings upgrades achieved earlier in the year. I am very pleased with our progress which reflects the improvement of our financial performance and we are well positioned for the new financial year.”

TechCentral Reporters

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