Discussions over ownership still ‘ongoing’, says Eir

Eir chief executive, Richard Moat, has said that discussions over the future ownership of the communications company are “ongoing”.

In September, Eir — currently 42% owned by US hedge fund, Anchorage Capital — announced it had received an approach from an unnamed potential investor, regarding a possible “significant investment”. It added that existing shareholders remained committed to their investment “for the foreseeable future”.

That statement followed reports suggesting Anchorage was considering a trade sale of the group, rather than an IPO, which had been seen as a likely option.

It was later reported that Xavier Niel — the majority owner of French telecoms company, Iliad, controlling stakeholder in Monaco Telecom and a co-owner of French newspaper, Le Monde — was the interested party, but Eir’s management declined to expand upon its September announcement, yesterday.

However, Mr Moat said Eir remains “well on course” to achieve its stated target of low, single-digit percentage growth in earnings, in its current financial year, after posting its tenth consecutive quarter of earnings growth.

First quarter earnings — on an EBITDA basis — grew by 2%, year-on-year, in the three months to the end of September. However, underlying revenue was down 2%, to €322m. On a reported basis, revenues for the quarter dropped 3.5%, year-on-year, to €316m. The drop in revenue was down to the strategic decision to exit certain low-margin business lines and mobile termination rate reductions implemented in September of last year, which had a €4m year-on-year impact on Eir.

Mr Moat also disagreed with suggestions that the National Broadband Plan — for which final submissions are due to be made to government early next year — could take longer than planned to execute.


More in this Section

US rate fears crash party

No surprise if airlines collapse as winter sets in

Little drama and little joy from today’s budget


Breaking Stories

Ryanair signs agreement with Portuguese pilots' union

Domino’s trims guidance but sees Irish sales rise

Our political classes ‘quite oblivious’ to risks

Electric Picnic company profits fall 9% to €1.48m

Breaking Stories

'Jesus, did I paint them?’; Robert Ballagh reacts to the nude portraits to him and his wife

Here's what you can expect from Making a Murderer 2

’Tis the season... for scares: Your guide to Ireland's Haunted experiences

Ask Audrey: I’m pretending to be a poet to impress a stunning pseudo-intellectual from Clonakilty

More From The Irish Examiner