Colt posts slight drop in 2006 revenues

22-02-2007

by Charlie Taylor

Colt Telecom saw revenues fall slightly in 2006 and admitted that it was unsure what to expect in terms of the forthcoming financial year.

The firm -- which provides telephony and IT services to businesses in Ireland and across Europe -- said on Thursday that revenues dropped by 1.1 percent to EUR1.8 billion in 2006.

However, in a move which failed to reassure investors, the firm refused to give an outlook for 2007, due to a review being undertaken by chief executive officer Rakesh Bhasin who took over as the company's fifth CEO in six years last November when Jean-Yves Charlier returned to Fidelity Investments.

"The outcome for 2007 is harder than normal to predict because of the potential investment consequences of this review and the uncertain full year impact of increasingly soft voice revenues, nevertheless we expect further progress in 2007," said Bhasin.

"In 2007, our focus will be on growing revenue, especially data and managed services; introducing more innovative services and technologies; providing an outstanding customer experience and continuing to manage our costs and capital expenditure so that Colt becomes an even stronger business," he added.

Colt Telecom shed STG0.15 off its share price on London's FTSE on Thursday afternoon following publication of the company's latest financials.

During 2006, the company saw its pre-tax losses improve from EUR489.8 million to EUR18.8 million. The firm's full-year Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) was up EUR17.2 million at EUR270.9 million.

For its fourth quarter, Colt's revenues decreased by 1.4 percent to EUR449.2 million. Net profit for the period for the three months ended 31 December, reached EUR 8.9 million.

Colt, which currently employs 30 people in Ireland, said that its financial position continued to be strong, with cash and cash equivalents of EUR196.3 million and net debt of EUR65.9 million at the end of the fourth quarter.