Colt Group S.A. Interim Management Statement for the quarter ended 31 March 2011

28 April 2011

Colt Group S.A. (London Stock Exchange: COLT) today issued its Interim Management Statement for the three months ended 31 March 2011.
FINANCIAL REVIEW

Revenue of €377.6 million (Q110: €396.0 million) represented a decline of 4.6 per cent due to lower Voice revenue largely as a result of mobile termination rate reductions in Germany. Data and Managed Services revenue was in line with that of the same period a year ago.

EBITDA of €77.0 million (Q110 : €77.4 million) was consistent with that of the first quarter 2010. EBITDA margin strengthened due to the improved mix of Data and Managed Services revenue.

Net funds² at 31 March 2011 amounted to €253.3 million (31 Dec 2010: €300.4m) mainly as a result of seasonal outflows, higher capital expenditure and restructuring payments.

¹EBITDA is earnings before net finance costs, tax, depreciation, amortisation, foreign exchange and exceptional items
²Net Funds includes deposits classified as current asset investments

Rakesh Bhasin, Chief Executive Officer, said:

“Our restructuring is largely complete and our customer facing business units are focused on the generation of new orders. We continue to see signs of renewed interest from customers who had deferred spending but this has yet to have a meaningful impact on our revenue. However, we remain confident that we will achieve growth in our Data and Managed Services revenue this year.”

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 IT services and communications industries, (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.

Enquiries:

Investor Relations:
Gill Maclean
DDI: +44 (0) 20 7863 5314
Email: gill.maclean@colt.net

Press:
Paul Osgood
DDI: +44 (0) 20 7863 5015
Mobile: +44 (0) 7855 301078
Email: paul.osgood@colt.net