Eircom Reports Q3

DUBLIN -- eircom today announced its results for the third quarter andnine month financial period ended 31 March 2009.Group EBITDA, before non-cash pension credit and net construction income, was €173 million,down €2 million on the corresponding quarter of the prior year. Group revenue was €488 million,down 5% for the quarter.EBITDA figures are supported by a 17% year on year growth to €35 million from Meteor EBITDA.

Meteor revenues, before intra-company eliminations, are €117 million in the period, down 2% onthe corresponding period. The slight decline is mostly in the pre-paid segment as a result of lowerARPU. Mobile subscribers are up 5% on the corresponding quarter.Meteor also launched mobile broadband services on the 3G network in Dublin and Cork during theperiod. It has performed well since its launch and, up to 24 May 2009, 7,400 customers have signedup for the service.

In the fixed line segment, revenues before intra-company eliminations declined 7% on thecorresponding quarter to €385 million for the quarter. Fixed line EBITDA declined 5% on thecorresponding quarter to €138 million. eircom added 19,000 DSL broadband customers during thequarter. eircom lost 22,000 Retail PSTN telephone customers in the quarter, compared with 24,000in the previous quarter.

Capex cash outflow was €270 million for the nine months to 31 March 2009, reflecting ourcontinued commitment to rollout broadband and 3G, and to increase network capacity on both ourfixed and mobile networks.

During May 2009 eircom reached a watershed ‘Accord’ with the Unions that at ‘Stage 1, providesfor a substantial reduction to eircom’s cost base via a range of initiatives including a pay freeze,reductions in allowances and significant headcount reductions over the period to July 2011.

‘Stage 2’ discussions are underway to agree further cost savings and appropriate remedial measuresin respect of eircom’s Defined Benefit pension scheme.

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