Eircom profits up but turnover down
The Irish incumbent telco Eircom posted results for the year ended 31 March 2004 which showed a big jump in profits despite lower turnover.
Eircom made an operating profit of €118m and increase of 39 per cent on last year. Turnover was down three per cent to €1.63bn compared to €1.68bn last year. Turnover fell because of the loss of low margin transit business and discontinued business. Operating margin was up from 5 per cent to 7.2 per cent.
Operating costs were down two per cent due to lower head count and better cost control. The company had 7,943 employees at March 2004 compared to 8,547 in March 2003.
Phil Nolan, Eircom's chief executive, said: "This has been a defining year for the company. Following the successful transformation of Eircom we returned to the stock market in March 2004. The results for the full year are in line with our expectations."
Eircom had more than 38,000 DSL customers at March 2004 (versus 3,400 in March 2003) and more than 50,000 at the end of May 2004. ®