Advertisement

Opening Bell: Eircom's revenue bounce, AIB's redress programme, Ireland's manufacturing slowdown

Eircom has recorded a 5% increase in revenue in its forth quarter which ended in June. Opera...
Newstalk
Newstalk

07.55 1 Sep 2015


Share this article


Opening Bell: Eircom's...

Opening Bell: Eircom's revenue bounce, AIB's redress programme, Ireland's manufacturing slowdown

Newstalk
Newstalk

07.55 1 Sep 2015


Share this article


Eircom has recorded a 5% increase in revenue in its forth quarter which ended in June.

Operating profits rose 3% higher during the period to €481m.

Its full year revenue was €1.26bn, just below the €1.28bn that it took in during 2013. Operating costs at the firm dropped by 7% to €512m.

Advertisement

The company says it spent more than €290m in capital investment last year and that its fibre network, the most extensive in the country, now reaches 1.3m homes and premises.

Eircom is targeting a reach of 1.9m premises and says it will begin to roll out 1 gigabit capacity fibre to the home this month.

Operating profits at its mobile division rose by more than 60% to €58m and 28,000 customers were added to give a total of just under 1.1m subscribers.

Eircom reports growth in its mobile services, and a 19,000 increase in the number of people using its TV services.

The company has also announced that it will change its name, Eircom chief executive Richard Moat commented on the decision to rebrand: "The decision to launch a new brand underlines the extent to which the company has evolved our commitment to Ireland and our ambition for the future."

______________________________________________________

Irish manufacturing expanded at its slowest rate in 18 months during August as demand for new orders softened both in Ireland and abroad.

The Investec Manufacturing Purchasing Managers' Index figure for August was 53.6 - which still signals growth, but is down from 56.7 in July. It experienced a similar dip in June before rebounding.

Investec Ireland's chief economist, Philip O'Sullivan commented on the data: "We expect that the more troubled international backdrop and the slight euro softening seen last month were key factors behind this development."

"On balance, the sector still has significant tailwinds behind it and we still expect to see a strong finish to the year."

______________________________________________________

The Irish Mortgage Holders Organisation is encouraging AIB account holders to come forward if they believe that they were denied "their contractual right" to a tracker mortgage after the period which they were tied to their fixed interest rate ended.

It has contacted 4,200 people after some AIB customers raised concerns when they were not offered tracker mortgages after leaving their fixed rates.

This comes after Permanent TSB's announcing of a financial redress programme for 1,372 mortgage customers who were not told that they could avail of cheaper tracker rates from 2006 onwards.

______________________________________________________

China's economic slowdown appears to have continued, and intensified. The official purchasing managers’ index for the manufacturing sector fell to 49.7 in August - down from a neutral 50 in July.

Manufacturing in China's manufacturing sector contracted at its fastest pace in three years during the month.

The Markit/Caixin PMI which analyses data from smaller companies fell to 47.3, its lowest measure in six years.


Share this article


Read more about

Business

Most Popular