Eircom delivers 'robust' results

Eircom today announced earnings of €692m for the 12 months to end June, down 1% on the previous year.

Announcing its full-year and Q4 results this morning, the company said revenues for the year were down 3% to €1,997m.

Earnings for Q4 stood at €173m, down 2% on the corresponding period 2008, with revenues for the quarter falling 6% to €479m.

The company’s Meteor mobile division was a strong performer, with earnings for the year rising 11% to €124m. Earnings in the fixed line business were down 3%, at €568m.

CEO Paul Donovan described the results as “robust”, given the background of a “challenging operating environment”.

“We have made good progress in reducing costs to offset steep revenue declines,” O’Donovan said, adding that an agreement reached with unions in May marked an important first step in an essential transformation of the cost base of the group.

“We have implemented a pay freeze until June 2011 and are rolling out voluntary pay cuts of between 5% and 10%.

“Having made significant progress in headcount reduction in the past two years, we are working now to reduce our labour resources – including contractors – by 1,200 in the coming two years to June 2011."