Revenues at telecoms services providers Colt slipped 2 per cent in the first half due to falling voice revenues and a slowdown in data traffic, although the group's managed services business helped offset the impact.
Total carrier, corporate and reseller voice revenues declined 9.3 per cent overall to €345m (£299m) in the six-month period, and though data revenues rose 5.2 per cent to €398m on a constant currency basis, the unit's growth rate slowed to 2.9 per cent in the second quarter. This reflects a slowdown in orders from large corporate customers who have been reviewing spending plans in light of the economic downturn. The main growth driver remains as the smaller-managed services division, which has been benefiting from new data centre contracts that helped revenues rise by a third to €73.4m.
Lower spending on major infrastructure projects and larger internal projects coupled with lower customer installations have led Colt to revise its full-year capital expenditure forecasts downwards. Capital expenditure more than halved in the second quarter to €41.5m, compared to last year's corresponding quarter, and the full-year guidance is now in the range of €200m and €250m from initial estimates of €270m.
Analysts at Morgan Stanley expect full-year pre-tax profits of €93.7m and EPS of 11.1¢ (€71.9m and 8.1¢, respectively, in 2008).
COLT TELECOM (COLT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 119p | MARKET VALUE: | £1,058m | |
| TOUCH: | 118.75-119p | 12-MONTH HIGH: | 146p | LOW:49p |
| DIVIDEND YIELD: | nil | PE RATIO: | 11 | |
| NET ASSET VALUE: | 136 cents | NET CASH: | €243m | |
| Half-year to 30 Jun | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2008 | 827 | 42.1 | 6.0 | nil |
| 2009 | 817 | 55.6 | 7.0 | nil |
| % change | -2 | +32 | +17 | - |
£1 = €1.16 | ||||
