Colt profit soars on managed comms sales


Colt profit soars on managed comms sales

Alex Scroxton
Business communications provider Colt Telecom has seen its annual profits surge by 69% year-on-year, hitting €121.6m (£108.4m) after tax and special items.

Sales figures were more muted thanks to the ongoing impact of the recession. The group posted a modest - but not unexpected decline - of 3.2% on 2008 to €1.62bn.

Reduced demand for data products at Colt's Major Enterprise Division, and a marked decline in voice sales were behind the slide. However, the impact was offset to some degree by 24% growth in managed services sales and Ethernet products.

Colt said the launch of its Colt Community partner network had attracted a large number of SME-focused resellers to sell managed comms services.

In a statement released to the City today, Colt sounded a note of caution over the pace of the economic recovery, but said that demand for enterprise clouds and virtualisation services would set its agenda for the coming months.

"Whilst our business plan does not rely on a rapid economic recovery, we believe that confidence will start to return during 2010 to those customers who have delayed or reduced their IT expenditure plans," said CEO Rakesh Bhasin.

"The strength of our balance sheet means we are well placed to respond to opportunities and to benefit from an economic upturn," he added.

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