Issued Wednesday 27th May 2009: eircom today announced its results for the third quarter and nine month financial period ended 31 March 2009.

Group EBITDA, before non-cash pension credit and net construction income, was €173 million, down €2 million on the corresponding quarter of the prior year. Group revenue was €488 million, down 5% for the quarter.

EBITDA figures are supported by a 17% year on year growth to €35 million from Meteor EBITDA. Meteor revenues, before intra-company eliminations, are €117 million in the period, down 2% on the corresponding period. The slight decline is mostly in the pre-paid segment as a result of lower ARPU. Mobile subscribers are up 5% on the corresponding quarter.

Meteor also launched mobile broadband services on the 3G network in Dublin and Cork during the period. It has performed well since its launch and, up to 24 May 2009, 7,400 customers have signed up for the service.

In the fixed line segment, revenues before intra-company eliminations declined 7% on the corresponding quarter to €385 million for the quarter. Fixed line EBITDA declined 5% on the corresponding quarter to €138 million. eircom added 19,000 DSL broadband customers during the quarter. eircom lost 22,000 Retail PSTN telephone customers in the quarter, compared with 24,000 in the previous quarter.

Capex cash outflow was €270 million for the nine months to 31 March 2009, reflecting our continued commitment to rollout broadband and 3G, and to increase network capacity on both our fixed and mobile networks.

During May 2009 eircom reached a watershed ‘Accord’ with the Unions that at ‘Stage 1, provides for a substantial reduction to eircom’s cost base via a range of initiatives including a pay freeze, reductions in allowances and significant headcount reductions over the period to July 2011. ‘Stage 2’ discussions are underway to agree further cost savings and appropriate remedial measures in respect of eircom’s Defined Benefit pension scheme.

 27 May 2009

HIGHLIGHTS FOR THE QUARTER ENDED 31 March 2009

• Group revenue of €488 million, down 5% on the corresponding quarter ended 31 March 2008.
•  Group EBITDA, before non-cash pension credit and net construction income, of €173 million, down €2 million on the corresponding quarter of the prior year.
•  Fixed line revenue, before intra-company eliminations, of €385 million, down 7% on the corresponding quarter ended 31 March 2008, reflecting reduced ARPUs across key products and bundles, lower traffic and PSTN volumes as well as higher discounts. Fixed Line EBITDA of €138 million, down 5% on the corresponding quarter ended 31 March 2008.
•  DSL customer net adds of 19,000 for the quarter ended 31 March 2009, down from 25,000 in the quarter to December 2008, and from 37,000 in the quarter to 31 March 2008.
•  Net Retail PSTN line losses of 22,000 for the quarter ended 31 March 2009, while WLR lines remained unchanged. This compares to net Retail PSTN line losses of 24,000, offset by 9,000 WLR net gains in the quarter to 31 December 2008, and net Retail PSTN line losses of 7,000, offset by 3,000 WLR net gains in the quarter to 31 March 2008. Retail PSTN lines at 31 March 2009 were 1,242,000 while WLR lines were 317,000.
•  Meteor revenue, before intra-company eliminations, of €117 million, down 2% on the corresponding quarter in the prior year, mainly in the pre-paid segment which was impacted by lower ARPU, partially offset by subscriber growth.
•  Meteor EBITDA of €35 million for the quarter ended 31 March 2009, 17% higher than in the corresponding quarter ended 31 March 2008.
•  Mobile subscriber net losses of 8,000 in the quarter, compared with net adds of 13,000 in the corresponding prior year quarter.

HIGHLIGHTS FOR THE NINE-MONTH PERIOD ENDED 31 March 2009

• Group revenue of €1,518 million, down 2% compared with the nine months ended 31 March 2008.
•  Group EBITDA, before non-cash pension credit, net construction income and profit on disposal of property and investments, of €506 million, down 3% on the corresponding nine-month period in the prior year.
•  Fixed line revenue, before intra-company eliminations, of €1,191 million, down 4% on the nine months ended 31 March 2008, as a result of reduced ARPUs across key products and bundles, lower traffic and PSTN volumes as well as higher discounts.
•  Fixed line EBITDA of €414 million in the nine months to 31 March 2009, down 5% on the corresponding prior year period.
•  DSL customers increased to 658,000 at 31 March 2009, up 87,000 compared with 31 March 2008. Retail DSL subscribers at 31 March 2009 stood at 472,000.
•  Net Retail PSTN line losses of 78,000, partially offset by 20,000 WLR PSTN net gains since 31 March 2008.
• Meteor revenue, before intra-company eliminations, of €372 million, up 4% on the corresponding nine months to 31 March 2008 due to subscriber growth, offset by a decline in ARPU.
•  Meteor EBITDA of €92 million for the nine months to 31 March 2009, up 10% from €84 million for the corresponding prior period.
•  Total Meteor subscribers, including Mobile Broadband, of 1,024,000 as of 31 March 2009, up 49,000 from 975,000 subscribers at 31 March 2008. Post paid subscribers stood at 131,000, up 9% on 31 March 2008.
•  Average monthly Meteor blended ARPU of €37.52 for the nine-month period to 31 March 2009, down 6% compared with prior year, due mainly to the increased number of promotions in the year, and lower activity.
•  Capex cash outflow of €270 million in the nine-month period, as we continue to focus on increasing fixed and mobile network capacity, rolling out broadband, developing our Next Generation and 3G Networks, and the roll out of the Tetra Digital Radio Network.
•  Net debt stood at €3,355 million at 31 March 2009, down €111 million since 30 June 2008. Cash on hand was €243 million, after payment of interest and capital in March 2009.
•  Goodwill impairment of €720 million and pension scheme deficit of €433 million previously reported at 31 December 2008. No assessments have been undertaken since 31 December 2008.