Telecoms provider Colt Group's profit falls as voice revenue dips
Oct 31 (Reuters) - European telecoms provider Colt Group SA reported a 4.4 percent drop in core earnings due to lower voice revenue, changes in its product mix and lower data margins.
Shares in the company were down 3.5 percent at 122.6 pence at 0843 GMT on the London Stock Exchange. The stock was among the top percentage losers on the FTSE-250 Midcap Index.
Colt, which runs fibre optic networks and data centres for large and mid-sized companies, said group earnings before interest, taxes, depreciation and amortization (EBITDA) fell to 78.0 million euros ($107.41 million) for the quarter ended Sept. 30 from 81.6 million euros a year earlier.
Total revenue fell 1.1 percent to 386.5 million euros.
The company said revenue was also hurt due to regulatory rate cuts across Europe and the impact of foreign exchange rate fluctuations on its sterling-denominated revenue.
Colt had said in July that it expected core earnings to be subdued in the second half of the year due to continued investment in strategic areas.
"Given that Colt's record of cash generation is poor, we believe further execution will have to be shown before the potential of Colt's plans is reflected in share price performance," J.P. Morgan Cazenove analysts wrote in a note.
($1 = 0.7262 euros) (Reporting by Roshni Menon in Bangalore; Editing by Supriya Kurane)