Thursday, May 28, 2009
Eircom's third quarter results show an operating profit of EUR69 million, down 27 percent from last year's EUR95 million.
Meanwhile, revenue fell 5 percent to EUR488 million. The company lost 22,000 telephone customers in the quarter, but garnered an extra 19,000 broadband subscribers.
On the plus side, profits at Eircom subsidiary Meteor jumped 17 percent to EUR35 million; however revenue at the mobile operator slipped 2 percent to EUR117 million.
In line with the experiences of rival mobile operators Vodafone and O2, Meteor's average monthly revenue per user fell 6 percent to EUR37.52 over a year.
Given that Three have been effectively handed the Governments Broadband Rollout contract this may hit Eircom hard in both the fixed line ADSL market and "Mobile Broadband" ala Midband market with Meteor's "Broadband" packages.
Once Three begin rolling out their Midband packages across all of Ireland and they pump up advertising on it it will be interesting to see how this will hit Eircom's profit margins even further.
We all think eircom sucks but compared to Three I'd rather see the people of Ireland receive a ADSL Broadband service instead of a Three Midband (Mobile Broadband) service which is frankly not suitable for on-line gaming, VoIP etc.
Some content Taken from enn.ie