Telecoms group Colt posted a 1.1 per cent decline in third quarter revenue and a drop in earnings before interest tax, depreciation and amortisation (EBITDA), primarily as a result of higher spend and expenses resulting from cost efficiency programmes.
EBITDA for the period came in at €81.6m, compared to €84.3m the same period the previous year, down 3.2%, while revenues fell from €395m to €390.8m.
The decline in revenue was largely due to asset sales which were €6.3m lower in the quarter compared to the same period the previous year, which had included modular data centre sales. Growth in non-DCS Managed Services and Data revenues in the quarter more than offset a decline in Voice revenues, the firm said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
At the period end (Sept 30th) net funds totalled €263.2m, down from €288.5m three months earlier, reflecting increased capital expenditure in line with its investment programme, initial cash payment for the acquisition of ThinkGrid for €9.2m and changes in working capital items. Cumulative capital expenditure for the first three quarters of 2012 amounted to €232.2m (2011: €219.7m).
Rakesh Bhasin, Chief Executive Officer, said: "We continue to execute and invest in our strategic plan against a backdrop of challenging economic conditions in Europe. Our pipeline of opportunities remains encouraging. In line with our future direction, we continue to review initiatives to accelerate the required skills transformation for future growth while aligning cost structures for our legacy business."
Shares rose 0.42% to 118.40p by 09:50.
NR
-
Lloyds, Halifax and Bank of Scotland to shut another 45 branchesLloyds Banking Group, which includes Halifax and Bank of Scotland, is set to close a further 45 branches in 2024 - find out if a branch near you is closing.
-
US stock trading app Robinhood launches in the UK
The low-cost trading platform has opened another waiting list for British investors - following two failed attempts to launch in this country - and is hoping to be fully operational next year.
