Meteor earnings down by 19%

THE economic downturn and intense competition in the mobile phone market contributed to earnings declining at Meteor by 19% to €102 million last year.

Accounts filed with the Companies Office by Meteor Mobile Communications Ltd show revenues fell 6%, from €491.2m to €458.1m, in the 12 months to the end of June 2011.

The eircom-owned company’s earnings, before interest, tax, depreciation and amortisation (EBITDA), fell €24m to €102m.

Pre-tax profits declined by 75%, from €37.2m to €9m. The combined non-cash costs amounted to €89.2m last year, compared to €85.6m in 2009.

The company’s finance costs, increasing by 14%, from €2.7m to €3.1m, hit pre-tax profits last year.

Profits were also hit by restructuring costs of €1.4m, compared to €2.7m the previous year.

The directors’ report attributes the 19% drop in EBITDA “to the downturn in the general economic climate and the intense competition in the mobile market”.

The report claims the company achieved a 2.6% growth in subscriber numbers during the year to 1,043,364 — including mobile broadband subscribers of 41,792.

The directors state: “During the past 12 months, the company maintained its customer base and improved the coverage and capacity of its network, despite the general economic downturn”.

Operating costs, excluding amortisation, depreciation and restructuring, reduced from €362m to €354.8m.

The company’s operating costs included a €6.42m loss for the impairment of trade receivables during the year – more than double the 2009 cost of €3m.

The €1.4m in restructuring costs relates to the impact on Meteor of Eircom’s announcement in 2009 that it intended to cut 1,200 jobs in the group.

The numbers employed at the company dropped, from 789 to 751, with staff costs reducing from €59.5m to €48.1m.

Meteor’s accounts show that last year’s after-tax profits of €2.5m helped reduce Meteor’s accumulated losses to €149m.

However, with a capital contribution of €365.6m, the company has equity of €217.2m.