Eircom profits slip for first quarter

Eircom today announced its results for the first quarter to end-September, posting a 2% drop in profits that it attributed to the economic downturn, and signalling possible future job cuts.

Group EBITDA was €169 million for the quarter, down 2% on the corresponding quarter last year, the company said. Revenue for the quarter was €513m, in line with the corresponding period 2007.

Eircom CEO Rex Comb said: "The deteriorating economic environment has impacted the performance of the group during the first quarter, reflected in increased pressures on our revenues."

"In line with the changing economic climate and consistent with an increased focus on cost reduction across the group, we remain committed to continued headcount reductions."

The results come just a day after the Government announced it was to award a lucrative €40m national broadband contract to rival telcom provider 3 Ireland.