EIRCOM’S MOBILE subsidiary Meteor recorded pretax losses last year of €146.6 million after booking an impairment charge of €112 million.
Accounts just filed by Meteor Mobile Communications Ltd show revenues declined by 10.7 per cent from €458 million to €408.9 million in the 12 months to June 30th last year.
The impairment charge reflects lower cash flows in Meteor’s business plans, due to increased competition, a weaker macroeconomic environment accentuated by the International Monetary Fund bailout and the impact of Budget 2011, reduced consumer spending and rising unemployment, the directors said.
Earnings before interest, tax, depreciation and amortisation (Ebitda) dropped by 42 per cent from €102 million in 2010 to €59 million. “Since the year end, the mobile market has continued to be extremely challenging and the company’s Ebitda has further declined,” the directors state.
“This is attributable to the downturn in the general economic climate, the reduction in mobile termination rates and continued intense competition.”
Michael McAteer of Grant Thornton has finalised a scheme of arrangement with Eircom’s lenders which he hopes will allow the company to exit the process.
Mr McAteer has called a meeting in Dublin for May 18th to outline the plan to creditors, after which he will take it to the Commercial Court for approval.
Subscriber numbers at Meteor declined last year by 1.2 per cent to 1,031,268. Meteor recorded a pretax profit of €9.1 million in 2010.
A restructuring charge of €1.4 million – compared to €3.5 million in 2010 – contributed to the losses last year.
The filings show that the company’s operating costs, excluding amortisation, depreciation and restructuring costs, last year decreased from €354.8 million to €346.7 million.
Staff costs totalled €45.5 million, compared to €48.1 million in 2010.
Numbers employed by the firm declined over the year from 751 to 673.
Meteor was formed in 2001 after securing the country’s third mobile licence. Its accumulated losses now stand at €283.4 million.
