Colt Telecom improves performance, cuts down loss

Colt Telecom improves performance, cuts down loss

	Published : Fri, 21 Oct 2005 00:35 By : Paula Demarzio Print this Story

LONDON: Colt Telecom Group Plc recorded a 36 per cent increase in its third quarter core earnings as it implemented stiff cost cutting measures and generated higher than expected revenue from data services. The telecom company continued to be in the red, the net loss, however, narrowing to 19.2 million pounds from 35 million pounds in the corresponding previous year quarter.

Colt, which operates communication networks in more than 30 cities in 13 European countries said its earnings before interest, tax, depreciation and amortisation (EBITDA) went up to 45.9 million pounds, up 12.1 million pounds from the corresponding previous year period. The company could cut on selling, general and administrative costs for a third consecutive quarter to 61.9 million pounds, while its turnover grew 2.4 per cent on the year to 311.8 million pounds.

Its next target is to get into the a profit, the company said, but declined to put any time period for this.

The company said the telecom sector in the country is poised for consolidation, but it would not participate itself as it is not in need of any more assets. Cable & Wireless had bought smaller rival Energis in August and broadcasting company BSkyB is negotiating to buy Easynet. The company's chief executive Jean-Yves Charlier said any sectoral consolidation would help the company to overcome the pricing pressures. There will be less number of competitors, he added.

Colt competes with BT Group Plc, Cable & Wireless, Thus Group Plc and others for large corporate telecom business, which sees over-capacity as a result of over investment.

Colt, more than 50 per cent owned by U.S. fund Fidelity, has been moving several heads of work to India as part of an elaborate outsourcing exercise. It said it expected to have 15 per cent of its operations carried out from India by end-2005. It is also focusing on selling advanced Internet-based services, which send voice, data and video down one line.