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BRIEF-Colt Group announces restructuring; to withdraw from 85 pct of carrier voice unit
April 22, 2014 / 6:16 AM / 4 years ago

BRIEF-Colt Group announces restructuring; to withdraw from 85 pct of carrier voice unit

April 22 (Reuters) - Colt Group SA

* Q1 revenue 399.8 million eur versus 392.1 million eur year ago

* Group revenue for quarter amounted to eur 399.8 million (Q1 ‘13: eur 392.1 million)

* Voice services revenue grew 0.8 pct (Q1 ‘13: declined 4.6%)

* Network services revenue grew 0.4 pct

* Year on year revenue growth of 2.0 pct (Q1 ‘13: declined

* On a constant currency basis group revenue grew 1.2 pct (Q1 ‘13: declined 0.7 pct) with contributions from all four lines of business

* Q1 it services revenue grew 15.0 pct

* Group EBITDA of eur 74.1 million (Q1 ‘13: eur 80.5 million) represented a year on year decline of eur 6.4 million (8.0%).

* We expect that execution of all of business plans will result in certain workforce restructuring actions during second half of 2014

* Expect 2014 EBITDA (before restructuring charges) to range c.5 pct to 10 pct below current consensus estimates of eur 325 mln

* Announcing planned reduction in carrier voice business, will withdraw from approximately 85 pct of carrier voice trading contracts over next few months

* In addition we expect to incur restructuring charges in second half of 2014 of approximately eur 30 mln relating to execution of plans laid out above.

* Decision will result in loss of about eur 175 mln of annualised revenue (total 2013 carrier voice revenue was eur 250.4m), with roughly half reduction evident in FY 2014

* We expect that execution of all of business plans will result in certain workforce restructuring actions during second half of 2014 as company aligns its cost structure to improve profitability.

* Payback on restructuring will typically be in range of 9 to 12 months and for most part occur in 2015. Source text for Eikon: Further company coverage:

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