Esat BT sales rise 20% to €289m

ESAT BT reported sales rose 20% to €289 million in the year ended March 31. Earnings before tax increased to €38m.

The group still earns the largest share of its profits in the North, but is determined to grow the business here significantly in the next three years.

During the year it had secured a number a major contracts in the information and communications technology sector, including a seven-year €151m deal with Bank of Ireland.

Chief executive Bill Murphy was upbeat yesterday about the outlook in the market.

He believes the new regulator in the Republic and the commitment of Minister Dermot Ahern to open competition has cleared the way for a much healthier market in the years ahead.

Mr Murphy said in an interview yesterday that he plans to spend over €100m in the next three years to ensure the group can exploit the more open market conditions. Broadband services and the fixed line market will form the twin track growth strategy.

Esat wants to grow the fixed line business to between 15% and 20% of the market over the period.

Broadband is also wide open for exploitation, he said. Only 60% of the Republic is connected to broadband.

Mr Murphy believes that flat rate pricing will secure a significant share for the group in the next phase of its Irish development. He said the advent of single billing presented Esat BT with what he called "exciting challenges" in the year ahead.

He said the Irish residential telephone market is now open to true competition.

In his view Mr Murphy said that 2003/4 marked a "significant turning point" for the company.

"There has been solid growth in the corporate sector. Our credentials as a leading provider of network centric ICT solutions have been fully endorsed by our ongoing success in the corporate sector," he said.

He said the company was looking forward to working with the public sector on a number of planned initiatives such as decentralisation and the broadband for schools programme.

He also said Esat BT would continue to support the development of an All-Ireland ICT market for consumers and businesses by working closely with BT Northern Ireland.

Esat BT's British parent, BT Group, reported a better than expected 19% rise in annual earnings.