Business comms provider Colt Group has recorded a 2.4% drop in full-year sales as voice revenues dried up and data sales remained flat.
Colt blamed the slowdown, which is also being seen by its rivals, on competitive pressures and reductions in mobile termination rates.
The firm made total revenues of €1.58bn (£1,35bn), with data sales growing just 0.8% to €801m and voice sales shrinking by 9.2% to €609m.
Colt's managed services business offset the declines to some extent, growing 10.6% to €172.6m.
EBITDA grew 3.6% to €330.2m but net profit shrank by 41% to €50.4m, mainly attributable to restructuring costs and higher depreciation from capital expenditure investment.
"I am pleased to report that ... we started to see improved data and managed services revenue growth having entered the year with a degree of caution given the uncertainty in the broader European economy," said CEO Rakesh Bhasin.
Colt is pushing on with a restructuring plan designed to boost its growth, efficiency and service effectiveness, and expects to deliver €10m of savings in 2011.