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Sales, profits down at cautious Colt

Alex Scroxton

Comms provider Colt Group has said its cautious business outlook during the first six months of 2010 is now giving way to increasing confidence for the coming period.

In a statement CEO Rakesh Bhasin said the firm's results were "in line with our expectations and our cautious approach adopted for the first half of 2010".

"Whilst Data and Managed Services did not create the growth to cover Voice decline at a revenue level we are seeing positive signs in the market which indicate an improvement in the second half and into 2011," said Bhasin.

First half sales decreased 2.8% year-on-year to €794.2m (£669.9m), while pre-tax profit was down 25.1% to €34.4m.

Broken down by division, Colt's Major Enterprise unit saw data revenues down year-on-year to, with a significant slowdown in sales of older bandwidth data products. Voice sales were also down, but managed services booked improving sales on the back of some large long-term contracts.

In its Midsize Business Division, Colt saw a slight rise in data sales as Ethernet sales came on-stream, and similar gains in managed services and voice was again down.

Finally, the Wholesale Division also generated growth in sales of data, while revenues from carrier voice and corporate and reseller voice were also down.

The group also bought out the threehold of its London-based partially developed 33MVA data centre for €57.1m, upping its capacity at the site by over 5,000 square metres.

The firm said it expected to report better figures in the back-end of the year as customer decision making accelerates and the impact of contracts signed in the last six months filters through.


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