COLT Telecom Group S.A. announces results for the quarter ended 31 March 2009
Q1 FINANCIAL RESULTS
Compared to Q1 2008
• Revenue increased by 1.3% to €416.2m and increased by 4.5% on a constant currency basis
• Data revenue grew by 3.7% to €199.7m and grew by 7.5% on a constant currency basis
• Managed Services revenue grew by 32.7% to €37.3m and grew by 38.8% on a constant currency basis
• Gross margin before depreciation remained constant at 38.9%
• EBITDA(1) increased by €6.8m or 9.4% to €78.9m
• Profit before tax and exceptional items increased by €8.5m to €17.1m
• Free cash outflow(2) decreased from €16.5m to €11.1m
• Capital expenditure decreased from €67.5m to €49.6m
The Group’s financial position has improved significantly, with cash and cash equivalents of €458.1m and
net funds of €195.9m at the end of the quarter, including proceeds of €199.1m from the Q1 Open Offer.
Commenting on the results, Rakesh Bhasin, Chief Executive Officer, said:
"Despite ongoing tough trading conditions, I am pleased to report another solid quarter of progress reflecting the resilience in COLT’s business model.
“With the proceeds of the Open Offer, COLT now has a significantly improved financial position and we were able to repay all of our outstanding debt in April.
“We will continue to manage our business tightly through the challenging trading conditions that are forecast for the business environment as a whole in 2009."
This Press Release is also available via the COLT website at www.colt.net.
Unless indicated otherwise, the following commentary is based on nominal variances including exchange rate movements. Certain key financial metrics are also provided at constant currency, converting Q1 2009 non-Euro currency measures at Q1 2008 exchange rates. Constant currency revenue metrics are included in Appendix 2.
All comparatives are against the equivalent period of the prior year.
Managed Services revenue has been separately disclosed for the first time in Q1 2009. This revenue was previously reported within Data revenue. COLT’s Managed Services comprise application hosting, infrastructure management, IT services, network and facilities management, including the provision of
hardware to support these services but excluding any associated Telecoms related revenue which remains within Data revenue.
Issue of shares by Open Offer
COLT announced and completed an Open Offer issue of shares during Q1 2009. Total proceeds from this sterling denominated share issue converted at the spot rate were €189.4m or €186.6m net of €2.8m of issue costs. COLT had entered into forward contracts at the time of the initial Open Offer announcement to convert the majority of Sterling receipts into Euros. The forward contract rates were favourable to the spot rate at maturity and accordingly COLT realised an exceptional €9.7m exchange gain within the income statement. Gross proceeds of the Open Offer including the €9.7m exchange gain were €199.1m.
As part of the Open Offer process, the shareholders approved a reduction in the nominal value of the Ordinary shares from €1.25 per share to €0.50 per share. Accordingly, the amount of the Group’s issued share capital in relation to the 680 million of existing shares at that time was reduced by €510.4m and transferred to distributable reserves. The Open Offer shares were also issued at a nominal value of €0.50 per share.
Click here for the complete Press Release
Tel: +44 (0) 20 7863 5314
Tel: +44 (0) 20 7390 3098
15 St Botolph Street