COLT losses widen; reveals plans to shift operations to Europe

23 Feb 2006

UK-based pan-European carrier COLT Telecom Group has reported a widening of losses in 2005 and revealed plans to relocate the company’s headquarters to Europe. COLT reported a GBP335.9 million (USD587.6 million) loss for the year ending 31 December 2005, compared with a restated GBP109.9 million loss in 2004. Revenues rose slightly to GBP1.245 billion, up from GBP1.218 million a year earlier, as did EBITDA, from GBP156.2 million to GBP173.4 million. The results were hit by an impairment charge of GBP247.2 million in the final quarter to write down the value of assets across its network. COLT ended 2005 with a total of 22,821 customers, up from 21,723 in 2004, of which 21,615 were corporate clients and the remainder wholesale customers. COLT used the results announcement to reveal plans to set up a new holding company in Europe, to better reflect the location of the bulk of its business. The company, currently registered in the UK, is expected to become a subsidiary of the new holding company. COLT says it also plans to raise GBP300 million in an equity sale to redeem early debt due in 2007-9.

United Kingdom, Colt Technology Services Group