COLT: Cost cutting, data services offset voice losses in 09

U.K.-based competitive business provider COLT Telecom was able to overcome slowing voice revenues with a 4.9 percent increase in full-year earnings. For 2009, the COLT full-year earnings of $434 million surpassed its internal forecast of $431 million.

COLT's three main business units (Major Enterprise, Small & Medium Business, and Wholesale) saw inevitable ups and downs during 2009.

Clearly, the star for COLT in 2009 was its Enterprise Division. During 2009, data revenue in its Major Enterprise Division declined 3.1 percent to $551.1 million with increased Ethernet revenue offset by slowing demand for other data products. The star of its Enterprise Division was Managed services, which saw revenue grow 27 percent from $133 million in 2008 to a little over $169 million in 2009.

"In 2009, Colt maintained momentum against a backdrop of economic uncertainty and challenging markets," said Chief Executive Rakesh Bhasin in an earnings release. "We grew Data and Managed Services revenue and delivered improved EBITDA."

The provider's Small & Medium Enterprise Division did not fare too poorly during 2009 either. For the year, SME data revenue increased by $8.71 million to $249 million, up from $240 million in 2008. Finally, COLT's wholesale business was up 5.4 percent to $281 million driven by strong demand for Ethernet.

For more:
- see the release here
- Reuters has this article

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