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Dublin: 13°C Saturday 23 October 2021

Here's how much the winter storms cost eircom

The telecoms company reported flat profits and a drop in revenues for the first three months of the year today.

Lahinch is battered by storms last winter
Lahinch is battered by storms last winter
Image: Laura Hutton/Photocall Ireland

THIS YEAR’S VIOLENT winter storms cost eircom €10 million in one-off network repair costs, the telecoms operator said today.

The group reported a five per cent drop in revenues for the first quarter of the year to €315 million, which it blamed on the repair costs.

Profit before deductions was stable at €119 million for the first three months of the year, with the company again blaming the poor winter weather for the lack of growth.

Job cuts

Employee numbers at the former semi-state giant continue to drop in line with a cost cutting plan. Just over 1,700 workers left the group since the start of 2013, with a further 200 set to exit before the end of this year.

Operating costs have come down by €100 million, while the telecoms operator was forced to make a provision of €7 million to pay a fine threatened by the regulator for failing to fix faulty phone lines.

Flotation on the cards

The company also indicated that it is still poised to go ahead with its planned floatation on the stock exchange, which would be its third listing in fifteen years.

The group chief financial officer Richard Moat said: “In conjunction with our advisors, we are now exploring a number of strategic options with a view to further strengthening the financial position of the company.”

Morgan Stanley and Goldman Sachs were appointed to advise on listing options last month.

Eircom also said that it has successfully rolled out 4G super-fast mobile internet to 50 per cent of customers, and has increased its bill pay user base to 39 per cent from 31 per cent last year.

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About the author:

Jack Horgan-Jones

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