The biggest mobile phone operator, Vodafone, has declared annual pretax profits €339.54 million from the two million customers at its Irish units in newly filed accounts. The sum brought the accumulated profits of the former Eircom close to the €1 billion mark, at €941.43 million.

When the Vodafone profit is combined with the €214 million pretax profit declared last week by its nearest rival O2, the figures show that the two dominant mobile players in the Irish market made profits in excess of €553.54 million. In one of the world's most profitable mobile markets, this equates to profits of more than €10 million per week between the big two.

While the new figures for Vodafone Ireland Ltd showed that its turnover and profits in the 12 months to March 2005 were down on the previous year, it said the drop was explained mainly by the exclusion in the most recent accounts of figures for its British "top-up" business. It also cited the scrapping of a technology project undertaken on a group-wide basis.

Vodafone Ireland's turnover fell to €1.21 billion from €1.4 billion and its pretax profit of €339.54 million was marginally behind the previous equivalent sum of €341.16 million. With the exclusion of the British "top-up" business resulting in a €300 million drop in turnover, Vodafone's turnover on a like-for-like basis would have increased to €1.51 billion. "Real underlying growth in turnover continued and at over 9 per cent year-on-year," the company said.

The business, which was originally part of Eircom, reported a gross profit of €828.62 million - up from €791.5 million - and operating profits of €326.97 million, down from €328.6 million. The company paid some €52 million in corporation tax last year.

It paid out no dividend last year, according to the accounts. The directors of the company received total pay of €2.06 million and pension contributions of €152,000.

Sales, marketing, administration and operational expenses declined in the year to €282.28 million from €303.09 million.

In notes to the accounts, the group indicated that its defined benefit pension plan had an actuarial valuation at the start of April 2004 of €58.14 million, an amount sufficient to cover 72 per cent of the benefits accrued to members.

The accounts also show that Vodafone Ireland provided a counter-indemnity to its London-listed parent, Vodafone plc, in respect of performance bond and guarantee facilities for €35.6 million that it has made on behalf of the Irish unit.