Connecting Ireland
Report & Accounts for the year ended 31 March 2004

Annual Report 2004 > Financial & Operational Highlights

Financial and Operational Highlights

Adjusted EBITDA before exceptional operating costs and pension amortisation up 9% to €602 million due to improved gross margins and lower operating costs, giving an increased Adjusted EBITDA margin of 37%.
Operating profit up 39% to €118 million, an operating margin of 7.2%, up from 5%.
Operating costs down 2%, due primarily to reduced pay costs, increased capitalised labour costs and an ongoing policy of improved cost control across all other operating costs.
DSL customers exceeded 38,000 at March 2004, up from 3,400 at March 2003. DSL customers exceeded 50,000 at the end of May 2004, and the pace is accelerating.
Turnover down 3% due primarily to loss of low-margin transit traffic and
discontinued businesses.
Cash outflows relating to capital expenditure increased as planned by 6% from €197 million to €208 million.
Year-end headcount 7,943 at March 2004, down from 8,547 at March 2003.

Financial Highlights
	2004 €‘m	2003 €‘m	% Change
Turnover	1,628	1,682	(3)%
Gross profit	1,218	1,183	3%
Operating costs before exceptional operating costs, depreciation and goodwill amortised	632	648	(2)%
EBITDA before exceptional operating costs	586	535	9%
Adjusted EBITDA before exceptional operating costs and pension amortisation	602	551	9%
Operating profit	118	85	39%
Cash outflows relating to capital expenditure	208	197	6%
Net debt excluding capitalised fees	1,959	1,791	9%

Reconciliation of Earnings
	2004 €‘m	2003 €‘m
Operating profit	118	85
Add back: Depreciation (net) Exceptional fixed asset impairment Goodwill amortised on subsidiary undertakings	368 38 38	399 - 38
EBITDA from continuing operations Exceptional operating costs	562 24	522 13
EBITDA before exceptional operating costs Pension amortisation	586 16	535 16
Adjusted EBITDA from continuing operations	602	551