Eir has unfortunately seen a decrease in profits during the first three months of the year as their costs increased. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) dipped to €128m, a decline of 9% from the same period last year. Elevated expenses for sales, marketing and mobile network activity were the main contributors to this decline.
Revenues for the quarter came in at €305m, a 2% growth compared to the year before. Operating costs saw a 6% rise to €105m, an increase of €7m year-on-year. Encouragingly, the number of customers using Eir’s fibre broadband services was up 2% at the end of March, totalling 845,000. 89% of the group’s total broadband base is now connected to Eir’s fibre network, with two million premises passed so far.
On the other hand, the group broadband base saw a decrease of 2% year-on-year, amounting to 946,000 customers. In contrast, TV subscribers rose by 9% to 87,000 customers and mobile subscriptions increased by 9% year-on-year, reaching a total of 1.3 million customers, with the postpay base climbing 11% to 102,000 subscribers.
Eir is also continuing its 5G rollout across Ireland, with ultra fast internet now available in 547 towns and cities. Data usage from mobile devices saw a 41% rise in the first quarter of 2023.
Yesterday, Eir was hit with a €2.45m fine by the Commission for Communications Regulation (ComReg) for overcharging customers, with estimated refunds of up to €6.7m likely to affect 76,000 customers.
Chief executive Oliver Loomes commented: “The first quarter of 2023 has been a good start to the year and we’re on track to connect another 250,000 homes and businesses to our fibre-to-the-home broadband network, already available to more than one million premises.” Chief financial officer Stephen Tighe added: “With 1.9 million premises anticipated to be passed with FTTH broadband by end of 2026, coupled with our rapid expansion in 5G network coverage, through our ongoing investment, we’re well-placed to grow our customer base by offering high-quality, high-value products in the coming years.”
