Eircom posted a 9 per cent rise in core year earnings today on lower costs and said trading since the end of the year had been in line with its budget and expectations.
The company said earnings got a boost from a 2 per cent decline in operating costs on the back of a lower wage bill as it shed some 600 jobs.
Adjusted earnings before interest, tax depreciation and amortisation (EBITDA) rose to €602 million for the year to March 31st on a 3 per cent decline in sales to €1.628 billion.
Eircom, which controls around 80 per cent of State's fixed-line market and pins its hopes for growth on the underdeveloped broadband market, said its total broadband customer base had risen to over 54,000 at the end of May.
"The company's recent promotional initiatives should help to further drive take-up," the firm said in a statement. It said its operating profit for the year rose 39 per cent to €118 million.
Shares closed yesterday at €1.44, valuing it around €1.07 billion. The shares are below their issue price of €1.55.