Meteor helping Eircom grow

COMREG has handed Eircom the 3G license it withdrew from Smart Telecom as the former State-owned telecommunications company pushed revenue growth up 9% in the quarter to the end of January.

The phone company acquired by Babcock & Brown Capital last year, said network investment by Eircom in DSL broadband rollout and mobile infrastructure has increased by 28% to €219 million of capex cash outflow for the nine-month period to date.

Eircom CEO Rex Comb, said that over the last quarter and during the nine-month period to date, the group continued to deliver solid revenue growth, both in fixed line and mobile.

This has largely been supported by Meteor’s contribution to revenue, EBITDA (earnings before interest, taxes, depreciation and amortisation) and an increase in subscribers, 69,000 new ones joining Meteor this quarter. This brings the total mobile subscribers to 803,000 as of 31 December 2006, a 28% increase in nine months.

“As of 31 January 2007, there are 819,000 mobile subscribers on Meteor’s network,” he added.

Eircom said an additional 60,000 DSL broadband customers joined in the quarter, a 50% increase on the previous quarter.

“The company believes the increase in broadband is a result of steps taken to stimulate demand through increased availability and attractive pricing.

“As of mid-February, there are 390,000 broadband customers on eircom’s network. At this current rate of take up, Eircom’s ambitious target to provide 500,000 DSL lines by the end of 2007 will be reached early,” Mr Comb said.

Revenue of €490 million is up circa 9% on the corresponding quarter in the prior year, on the basis of including Meteor’s revenues for the entire corresponding quarter to December 2005.