COLT Telecom Group S.A. announces results for the three and six months ended 30 June 2009


Compared to Q2 2008

• Revenue decreased by 3.6% to €401.2m and decreased by 2.0% on a constant currency basis
• Data revenue grew by 1.0% to €198.7m and grew by 2.9% on a constant currency basis
• Managed Services revenue grew by 25.3% to €36.1m and grew by 28.5% on a constant currency basis
• Gross margin before depreciation increased by 1.5 percentage points to 40.7%
• EBITDA(1) increased by €2.6m or 3.4% to €79.1m
• Profit before tax and exceptional items increased by €12.3m to €28.8m
• Free cash flow(2) increased from €19.9m to €43.5m
• Capital expenditure decreased from €85.7m to €41.5m

The Group’s financial position continues to be strong, with cash and cash equivalents of €243.1m at the end of the quarter. The Group repaid its remaining debt of €262.2m during the quarter.

Commenting on the results, Rakesh Bhasin, Chief Executive Officer, said:

"COLT has continued to move forward. Data revenue growth has continued to slow but we are seeing strong growth in Managed Services revenue. Notwithstanding the current economic environment, given the proven resilience and increasing strength of our business, I am confident that we will report another year of progress for 2009."

This Press Release is also available via the COLT website at www.colt.net.

FINANCIAL REVIEW

Unless indicated otherwise, all commentary below on the Group’s results and cash flows is based on nominal variances including exchange rate movements. Certain key financial metrics are also provided at constant currency, converting 2009 non-Euro currency measures at 2008 exchange rates. Constant currency revenue metrics are included in Appendix 1.

All comparatives are against the equivalent period of the prior year.

Repayment of debt

COLT repaid the existing €262.2m non-convertible debt on 17 April 2009 together with €6.8m of accrued interest.

Total revenue

Revenue for the quarter decreased by €15.1m, or 3.6%, to €401.2m, and decreased by 2.0% on a constant currency basis. Revenue for the six months decreased by €9.8m, or 1.2%, to €817.4m, but increased by 1.2% on a constant currency basis.

Data revenue for the quarter grew by €1.9m or 1.0% to €198.7m, and increased by 2.9% on a constant currency basis. The easing in the Data revenue growth rate from previous quarters reflects a continued slow down in orders as customers, particularly larger corporate customers in the Major Enterprise division, reviewed their planned expenditure in response to the current economic environment. The main growth in Data revenue continued to come from Ethernet products.

Data revenue for the six months grew by €9.0m or 2.3% to €398.4m, and increased by 5.2% on a constant currency basis for the reasons noted above.

Managed Services revenue for the quarter grew by €7.3m or 25.3% to €36.1m, and increased by 28.5% on a constant currency basis. For the six months Managed Services revenue grew by €16.5m or 29.0% to €73.4m, and increased by 33.6% on a constant currency basis. These increases were mainly due to new Data Centre contracts.

Corporate and Reseller Voice for the quarter reduced by €17.9m or 13.6% to €114.0m and for the six months reduced by €31.5m or 11.8% to €235.9m, principally due to declines in Germany, France, the UK and Italy.

Carrier Voice revenue for the quarter decreased by €6.4m or 10.9% to €52.4m. For the six months Carrier Voice revenue decreased €3.8m or 3.3% to €109.7m.

Total Voice revenue for the quarter declined by 12.7% and for the six months declined by 9.3%.

At 30 June 2009 deferred revenue (which mainly relates to Data revenue) was €197.8m (30 June 2008: €189.7m), a year on year increase of €8.1m. The increase during Q2 2009 was €10.0m (31 March 2009: €187.8m). An analysis of deferred revenue between Data and Managed Services is presented in Appendix 3.

Click here for the complete press release

Enquiries:

Gill Maclean
Email: gill.maclean@colt.net
Tel: +44 (0) 20 7863 5314

Mark Savage
Email: mark.savage@colt.net
Tel: +44 (0) 20 7390 3098

Group Communications
Beaufort House
15 St Botolph Street
LONDON
EC3A 7QN
www.colt.net

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