Three Ireland reports modest profit as user base grows

(stock photo)

Jon Ihle

March 18 2021 05:09 PM

Mobile operator Three Ireland has reported a modest 3pc increase in earnings for 2020 to €217m, in line with projections during what the company called "a challenging year".

Overall turnover fell 2pc to €593m from €603m driven by a decline in roaming revenue due to travel restrictions, but this was largely offset by a corresponding €9m drop in operating costs.

Three Ireland added 200,000 new active users last year, an increase of 8.6pc, despite the closure of its retail outlets throughout much of 2020. The company now has 2.6 million active customers giving it a market share of 36.7pc.

However, the increase in customers has not been reflected proportionally in earnings or revenue.

Three.ie experienced a 40pc increase in people looking to buy products and services directly while 88pc of all customer action went through digital channels, suggesting a significant change in consumer habits due to the pandemic.

The company said it invested €103m in its network, bringing its total investment spend since 2015 up to €550m.

“Despite the difficult environment, Three was the first mobile operator in Ireland to rollout 5G in every county to both bill pay and prepay customers in 2020, adapting during the pandemic to meet increased demand in suburban and rural areas," said CEO Robert Finnegan.

"Covid-19 presented new challenges for all parts of Irish society and we were delighted to play our role...While the closure of retail for a number of months in 2020 raised a new set of challenges, we are pleased to be able to deliver year on year EBITDA growth of 3pc to €217m."