21 October 2010
Colt Group S.A. (London Stock Exchange: COLT) issued today the Interim Management Statement for the three months ended 30 September 2010.
|Three months to 30 September|
Revenue of €392.7 million (Q309: €400.1 million) represented a decline of 1.8 per cent due to lower Voice revenue. Data revenue was flat whilst Managed Services revenue continued to grow albeit at a reduced rate.
EBITDA of €83.8 million (Q309 : €79.5 million ) increased by 5.4 per cent. The increase in EBITDA was delivered by higher Managed Services revenue and operating efficiencies including lower bad debt provisions.
Net funds at 30 September 2010 amounted to €281.4 million (30 September 2009: €278.9 million), reflecting the continued strength of the Group’s financial position.
In a separate statement issued today Colt outlined plans to simplify its organisation and to provide a platform for growth through investment in customer facing roles. The Company expects to take an exceptional charge of approximately €35 – 40 million in 2010 to increase efficiencies amounting to approximately €35 million in a full year. Of these annual efficiency benefits approximately 35% will be invested into new customer facing roles, providing recurring annual cost savings of approximately €20 million.
Rakesh Bhasin, Chief Executive Officer, said:
“Improvements in revenue mix and changes to provisions in the quarter delivered strong EBITDA margins and we remain on track to deliver improved profitability for the second half of the year whilst we simplify our business to create a platform for growth.”
1EBITDA is earnings before net finance costs, tax, depreciation, amortisation, foreign exchange and exceptional items.
2 Includes deposits classified as current asset investments.
Forward Looking Statements
This report contains “forward looking statements” including statements concerning plans, future events or performance and underlying assumptions and other statements which are other than statements of historical fact. Colt Group S.A. wishes to caution readers that any such forward looking statements are not guarantees of future performance and certain important factors could in the future affect the Group’s actual results and could cause the Group’s actual results for future periods to differ materially from those expressed in any forward looking statement made by or on behalf of the Group. These include, among others, the following: (i) any adverse change in regulations and technology within the telecommunications industry, (ii) the Group’s ability to manage its growth, (iii) the nature of the competition that the Group will encounter and wider economic conditions including economic downturns, (iv) unforeseen operational or technical problems and (v) the Group’s ability to raise capital. The Group undertakes no obligation to release publicly the results of any revision to these forward looking statements that may be made to reflect errors or circumstances that occur after the date hereof.
Senior Manager, Investor Relations
Tel: +44 (0) 20 7863 5314