LONDON, April 21, 2004 (PRIMEZONE) -- COLT Telecom Group plc (COLT), a leading pan-European provider of business communications solutions and services said today that it continued to grow turnover, win new business and deliver improved financial performance in line with expectations.
Turnover for the quarter was GBP301.1 million, an increase of 11% on a constant currency basis and after disposals. EBITDA increased by 37% to GBP46.5 million over the comparable period in 2003. COLT generated GBP13.8 million of positive free cash flow during the quarter and is well on track to achieve its goal of becoming free cash flow positive on a sustainable basis during 2005.
Highlights (1) of the quarter include:
-- Turnover of GBP301.1 million, up 11% on a constant currency
basis after disposals
-- Gross margin before depreciation improved from 33.6% to 34.2%
-- EBITDA (2) up 37% to GBP46.5 million
-- Positive free cash flow (3) of GBP13.8 million
-- Strong financial position with cash and liquid resources
of GBP786.1 million
(1) All comparisons are with the equivalent period of the prior year
(2) EBITDA is earnings before interest, tax, depreciation,
amortisation, foreign exchange and exceptional items.
(3) Free cash flow is the sum of net cash inflow from operating
activities less net cash outflows from returns on investments
and servicing of finance and from capital expenditure and
financial investment.
Commenting on the results, Chairman of COLT, Barry Bateman, said:
"I'm pleased to report that COLT continues to make good progress against its key performance targets and that these results reflect further improvements throughout the business.
"COLT remains financially strong. The business generated positive free cash flow during the quarter of GBP13.8 million. Cash and liquid resources at the end of the quarter were GBP786.1 million. We remain on track to achieve our goal of being free cash flow positive on a sustainable basis during 2005."
Steve Akin, President and Chief Executive Officer, said:
"First quarter performance was in line with expectations, with growth in turnover of 11% and a 37% increase in EBITDA to GBP46.5 million.
"A growing proportion of our turnover is now being generated from some of our newer services, IPVPN, Carrier Pre-Select and Intelligent Network Services in particular. In the quarter, the number of IPVPN customers rose to more than 700 across more than 5,000 sites throughout Europe making COLT one of the leading suppliers of IPVPNs in Europe.
"We continue to focus the business on maintaining and enhancing our reputation for world class customer service and our quality reputation has been further rewarded with BS7799 accreditation in recognition of our best practice in information security.
"Tight management of operating costs remains a priority. At the end of the quarter, employee numbers, including temporary and contract staff were 4,048 compared to 4,624 at the end of March 2003. SG&A as a percentage of turnover declined from 21% in the first quarter of 2003 to 19% in the first quarter of 2004. We are making steady progress in our plans to achieve further efficiency improvements through establishing a new support organisation in India."
KEY FINANCIAL DATA Three months ended
31 March
2003 2004
GBP m GBP m
Turnover 271.7 301.1
Interconnect and network costs (180.5) (198.1)
Gross profit before depreciation 91.2 103
Gross profit before depreciation % 33.6% 34.2%
Network depreciation (48.4) (46.8)
Gross profit (loss) 42.8 56.2
Loss for the period (before (40.9) (19.8)
exceptional items)
Loss for the period (after (40.6) (19.8)
exceptional items)
EBITDA (1) 34.0 46.5
(1) EBITDA is earnings before interest, tax, depreciation,
amortisation, foreign exchange and exceptional items.
Financial Review
Unless otherwise stated all comparisons are between the quarters ended 31 March 2004 and 31 March 2003.
Turnover
Turnover for the quarter was GBP301.1 million, an increase of 11%, driven by continued demand for COLT's services from existing and new customers and new service introductions.
Excluding the Fitec disposal in December 2003 turnover increased by 11% on a constant currency basis.
Corporate
Turnover from corporate customers for the quarter was GBP173.7 million, an increase of 7%. Switched turnover was GBP89.6 million and non-switched was GBP83.6 million, increases of 13% and 1% respectively. Among the more significant new customer wins during the quarter was a major IPVPN contract with the City of Amsterdam connecting nearly 60 local government departments with 22,000 employees.
Wholesale
Turnover from wholesale customers for the quarter was GBP127.4 million, an increase of 17%. Switched turnover was GBP97.8 million, an increase of 20% and non-switched was GBP29.5 million, an increase of 9%. The strong growth in switched wholesale in the quarter reflected COLT's success in the carrier pre-select market in Germany.
Cost of Sales
Cost of sales for the quarter was GBP244.9 million, an increase of 7%. Interconnection and network costs for the quarter increased by 10% to GBP198.1 million reflecting the overall increase in business and ongoing cost containment measures.
Network depreciation for the quarter was GBP46.8 million, a decrease of 3%. The decrease reflected the effect of some assets being fully depreciated, partially offset by further investment in fixed assets to support the growth in demand for services and new service developments.
Operating Expenses
Operating expenses for the quarter were GBP64.4 million, a decrease of 4%.
Selling, general and administrative (SG&A) expenses for the quarter were GBP56.6 million, a decrease of 1%. SG&A as a proportion of turnover in the quarter was 19% compared with 21% in the comparable period of 2003 reflecting the scale effects of the business and the benefits of the ongoing cost containment programmes. Initial start up costs associated with establishing support functions in India were GBP0.3 million.
Other depreciation and amortisation for the quarter was GBP7.8 million, a decrease of 18%. The reduction reflected the effect of some assets being fully depreciated, partially offset by increased investment in customer service and other support systems.
Interest Receivable, Interest Payable and Similar Charges
Interest receivable for the quarter was GBP5.9 million, a decrease of 22% as a result of reduced average balances of cash and investments in liquid resources. Interest payable and similar charges for the quarter were GBP17.6 million, a decrease of 22%. These decreases were due primarily to the reduction in debt and cash levels following the purchase and redemption of some of the Company's outstanding notes during 2003.
Interest payable and similar charges for the quarter included: GBP8.4 million of interest and accretion on convertible debt; GBP8.8 million of interest and accretion on non-convertible debt; and GBP0.4 million of other interest and unwinding of discounts on provisions. Interest payable and similar charges for the quarter comprised GBP11.9 million and GBP5.7 million of interest and accretion respectively.
Gain on Purchase of Debt
There were no purchases of debt in the quarter. Gains arising on the purchase of debt during the comparable period of 2003 were GBP0.3 million.
Exchange Gains (Losses)
For the quarter there were exchange gains of GBP0.2 million compared with exchange losses of GBP1.9 million in the equivalent period in 2003. The exchange losses in the prior year were due primarily to movements in the British pound relative to the U.S. dollar on cash and debt balances denominated in U.S. dollars.
Tax on Loss on Ordinary Activities
For the quarters ended 31 March 2003 and 2004, COLT generated losses on ordinary activities of GBP40.6 million and GBP19.8 million respectively and had no taxable profits.
Financial Needs and Resources
Free cash flow, the sum of the net cash inflow from operating activities less net cash outflows from returns on investments and servicing of finance and from capital expenditure and financial investment, improved from an outflow of GBP12.4 million in the quarter ended 31 March 2003 to an inflow of GBP13.8 million in the quarter ended 31 March 2004.
The improvement in free cash flow was driven by improved EBITDA and working capital, and reduced purchases of tangible fixed assets.
Net cash inflow from financing for the quarter ended 31 March 2004 was GBP0.4 million compared with GBP0.4 million outflow in the quarter ended 31 March 2003. COLT had balances of cash and investments in liquid resources at 31 March 2004 of GBP786.1 million compared with GBP802.4 million at 31 December 2003.
Consolidated Profit and Loss Account
Three months ended 31 March
2003 2003 2003 2004 2004
Before Exceptional After GBP'000 $'000
Exceptional Items Exceptional
Items GBP'000 Items
GBP'000 GBP'000
Turnover 271,720 -- 271,720 301,110 554,042
Cost of
sales
Interconnect (180,466) -- (180,466) (198,090) (364,485)
and network
Network (48,446) -- (48,446) (46,808) (86,127)
depreciation
(228,912) -- (228,912) (244,898) (450,612)
Gross 42,808 -- 42,808 56,212 103,430
profit
Operating
expenses
Selling, (57,235) -- (57,235) (56,555) (104,061)
general and
administrative
Other (9,594) -- (9,594) (7,846) (14,437)
depreciation
and
amortisation
(66,829) -- (66,829) (64,401) (118,498)
Operating (24,021) -- (24,021) (8,189) (15,068)
loss
Other
income
(expense)
Interest 7,471 -- 7,471 5,863 10,788
receivable
Interest (22,444) -- (22,444) (17,612) (32,406)
payable and
similar
charges
Gain on -- 349 349 -- --
purchase of
debt
Exchange (1,936) -- (1,936) 152 280
(loss)/gain
(16,909) 349 (16,560) (11,597) (21,338)
Profit (40,930) 349 (40,581) (19,786) (36,406)
(loss) on
ordinary
activities
before
taxation
Taxation -- -- -- -- --
Profit (40,930) 349 (40,581) (19,786) (36,406)
(loss) for
period
Basic and GBP(0.03) GBP0.00 GBP(0.03) GBP(0.01) $(0.02)
diluted
loss per
share
There is no difference between the loss on ordinary activities before taxation and the retained loss for the periods stated above, and their historical cost equivalents. All of the Group's activities are continuing. The basis on which this information has been prepared is described in Note 1 to these financial statements.
Consolidated Statement of Total Recognised Gains and Losses
Three months ended 31 March
2003 2004 2004
GBP'000 GBP'000 $'000
Loss for period (40,581) (19,786) (36,406)
Exchange differences 24,362 (21,556) (39,663)
Total recognised (16,219) (41,342) (76,069)
losses
Consolidated Reconciliation of Changes in Equity Shareholders' Funds
Three months ended 31 March
2003 2004 2004
GBP'000 GBP'000 $'000
Loss for period (40,581) (19,786) (36,406)
Issue of share capital -- 658 1,211
Shares to be issued (167) (215) (396)
Transfer investment in -- (195) (359)
own shares
Exchange differences 24,362 (21,556) (39,663)
Net changes in equity (16,386) (41,094) (75,613)
shareholders' funds
Opening equity 955,010 862,893 1,587,723
shareholders' funds
Closing equity 938,624 821,799 1,512,110
shareholders' funds
Consolidated Balance Sheet
At 31 At 31 March 2004
December
2003
GBP'000 GBP'000 $'000
Fixed assets
Intangible fixed 9,493 8,483 15,609
assets (net)
Tangible fixed 2,934,503 2,831,872 5,210,644
assets (cost)
Accumulated (1,590,218) (1,569,852) (2,888,528)
depreciation
Tangible fixed 1,344,285 1,262,020 2,322,116
assets (net)
Investments in own 195 -- --
shares
Total fixed assets 1,353,973 1,270,503 2,337,725
Current assets
Trade debtors 199,849 188,362 346,586
Prepaid expenses 66,834 46,954 86,395
and other debtors
Investments in 742,143 728,921 1,341,215
liquid resources
Cash at bank and in 60,239 57,202 105,252
hand
Total current assets 1,069,065 1,021,439 1,879,448
Total assets 2,423,038 2,291,942 4,217,173
Capital and reserves
Called up share 37,754 37,771 69,499
capital
Share premium 2,315,904 2,316,545 4,262,443
Merger reserve 27,359 27,359 50,340
Shares to be issued 215 -- --
Profit and loss (1,518,339) (1,559,876) (2,870,172)
account
Equity shareholders' 862,893 821,799 1,512,110
funds
Provisions for 62,860 54,521 100,318
liabilities and charges
Creditors
Amounts falling due 352,736 325,018 598,034
within one year
Amounts falling due
after more than one year
Convertible 700,131 667,831 1,228,809
debt
Non-convertible 444,418 422,773 777,902
debt
Total amounts 1,144,549 1,090,604 2,006,711
falling due after more
than one year
Total creditors 1,497,285 1,415,622 2,604,745
Total liabilities, 2,423,038 2,291,942 4,217,173
capital and reserves
Consolidated Cash Flow Statement
Three months ended 31 March
2003 2004 2004
GBP'000 GBP'000 $'000
Net cash inflow from 30,364 46,466 85,497
operating activities
Returns on investments
and servicing of finance
Interest received 7,508 5,233 9,629
Interest paid, finance (8,649) (8,844) (16,273)
costs and similar
charges
Net cash outflow from (1,141) (3,611) (6,644)
returns on investments
and servicing of finance
Capital expenditure and
financial investment
Purchase of tangible (41,629) (31,557) (58,064)
fixed assets
Sale of tangible fixed -- 2,454 4,515
assets
Net cash outflow from (41,629) (29,103) (53,549)
capital expenditure and
financial investment
Management of liquid 11,258 (14,282) (26,279)
resources
Financing
Issue of ordinary shares -- 443 815
Purchase of convertible (424) -- --
debt
(424) 443 815
Net cash
(outflow)/inflow from
financing
(1,572) (87) (160)
Decrease in cash
Notes to Financial Statements
1. Basis of presentation and principal accounting policies
COLT Telecom Group plc ("COLT" or the "Company"), together with its
subsidiaries, is referred to as the Group. Consolidated financial
statements have been presented for the Group for the three months
ended 31 March 2003 and 2004.
The financial statements for the three months ended 31 March 2003 and
2004 are unaudited and do not constitute statutory accounts within
the meaning of Section 240 of the Companies Act 1985. In the opinion
of management, the financial statements for these periods reflect all
the adjustments necessary to present fairly the financial position,
results of operations and cash flows for the periods in conformity
with generally accepted accounting principles in the UK. All
adjustments, with the exception of the exceptional items described in
Note 4, were of a normal recurring nature. The balance sheet at 31
December 2003 has been extracted from the Group's 2003 statutory
accounts.
Accounting policies and presentation applied are consistent with
those applied in preparing the Group's financial statements for the
year ended 31 December 2003 except for the adoption of UITF 38
"Accounting for ESOP trusts". Applying the UITF has resulted in the
balance sheet reclassification of the GBP195,000 investment in own
shares from fixed assets to the profit and loss account.
Certain British pound amounts in the financial statements have been
translated into U.S. dollars at 31 March 2004 and for the periods
then ended at the rate of $1.84 to the British pound, which was the
noon buying rate in the City of New York for cable transfers in
British pounds as certified for customs purposes by the Federal
Reserve Bank on such date. Such translations should not be construed
as representations that the British pound amounts have been or could
be converted into U.S. dollars at that or any other rate.
2. Segmental information
North Region comprises Belgium, Denmark, Ireland, The Netherlands,
Sweden and UK. Central Region comprises Austria, Germany and
Switzerland. South Region comprises France, Italy, Portugal and
Spain.
Switched turnover comprises services that involve the transmission of
voice, data or video through a switching centre. Non-switched
turnover includes managed and non-managed network services, and
bandwidth services.
Wholesale turnover includes services to other telecommunications
carriers, resellers and internet service providers (ISPs). Corporate
turnover includes services to corporate and government accounts.
For the three months ended 31 March 2003 and 2004, turnover by region
was as follows:
Three months ended 31 March 2003
Corporate Wholesale North Central South Total
Region Region Region
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Switched 79,575 81,376 49,913 73,489 37,549 160,951
Non-Switched 83,037 27,211 40,079 37,664 32,505 110,248
Other 235 286 45 317 159 521
Total 162,847 108,873 90,037 111,470 70,213 271,720
Three months ended 31 March 2004
Corporate Wholesale North Central South Total
Region Region Region
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Switched 89,587 97,765 54,574 93,308 39,470 187,352
Non-Switched 83,565 29,542 40,196 41,633 31,278 113,107
Other 547 104 112 109 430 651
Total 173,699 127,411 94,882 135,050 71,178 301,110
3. Loss per share
Three months ended 31 March
2003 2004 2004
GBP'000 GBP'000 $'000
Loss for period (40,581) (19,786) (36,406)
Weighted average 1,507,503 1,509,139 1,509,139
of ordinary shares
('000)
Basic and diluted GBP(0.03) GBP(0.01) $(0.02)
loss per share
4. Exceptional Items
Gain on purchase of debt
During the first quarter of 2003, the Group purchased some of its
convertible debt for a cash outlay of GBP0.4 million resulting in an
exceptional gain of GBP0.3 million.
5. Cash Flow Reconciliations
Three months ended 31 March
2003 2004 2004
GBP'000 GBP'000 $'000
Operating loss (24,021) (8,189) (15,068)
Depreciation and 58,040 100,564 54,654
amortisation
Exchange differences 163 381 701
Decrease in debtors 4,696 39,768 21,613
Decrease in creditors (238) (15,928) (29,308)
Movement in provision (8,276) (6,065) (11,160)
for liabilities and
charges
Net cash inflow from 30,364 46,466 85,497
operating activities
5b. EBITDA reconciliation
Three months ended 31 March
2003 2004 2004
GBP'000 GBP'000 $'000
Net cash inflow from 30,364 46,466 85,497
operating activities
Adjusted for:
Exchange differences (163) (381) (701)
Movement in debtors (4,696) (21,613) (39,768)
Movement in creditors 238 15,928 29,308
Total working capital (4,458) (5,685) (10,460)
adjustments
Movement in provision 8,276 6,065 11,160
for liabilities and
charges
EBITDA before 34,019 46,465 85,496
exceptional items
6. Changes in cash and investments in liquid resources
Three months ended 31 March
2003 2004 2004
GBP'000 GBP'000 $'000
Beginning of period 934,882 802,382 1,476,383
Net (decrease) (11,258) 14,282 26,279
increase in
investments in liquid
resources before
exchange differences
Effects of exchange 29,249 (27,504) (50,607)
differences in
investments in liquid
resources
Net decrease in cash (1,572) (87) (160)
before exchange
differences
Effects of exchange 2,669 (2,950) (5,428)
differences in cash
End of period 953,970 786,123 1,446,467
7. Summary of differences between U.K. Generally Accepted Accounting
Principles ("U.K. GAAP") and U.S. Generally Accepted Accounting
Principles ("U.S. GAAP")
a. Effects of conforming to U.S. GAAP - impact on net loss
Three months ended 31 March
2003 2004 2004
GBP'000 GBP'000 $'000
Loss for period (40,581) (19,786) (36,406)
Adjustments:
Deferred compensation (270) (66) (121)
(i), (ii)
Amortisation of 521 508 935
intangibles (iii)
Capitalised interest, (912) (1,096) (2,017)
net of depreciation
(iv)
Profit on sale of 261 261 480
IRUs (v)
Warrants (vi) (157) (317) (583)
Installation revenue (636) 1,746 3,212
(vii)
Direct costs 636 (1,743) (3,207)
attributable to
installation revenue
(vii)
Impairment (viii) (2,805) (2,805) (5,161)
Loss for period under (43,943) (23,298) (42,868)
US GAAP
Weighted average 1,507,503 1,509,139 1,509,139
number of ordinary
shares ('000)
Basic and diluted GBP(0.03) GBP(0.02) $(0.03)
loss per share
Notes to Financial Statements
(i) The Group acquired ImagiNet in July 1998 and Fitec in July
2001. The consideration for both of these purchases included deferred
shares and payments. The final elements of the consideration were
paid in July 2003.
Under U.K. GAAP, the deferred shares and payments were included in
the purchase consideration. The excess purchase consideration over
the fair value of assets and liabilities acquired was attributed to
goodwill and is being amortised over its estimated economic life.
Under U.S. GAAP, these deferred shares and payments were excluded
from the purchase consideration and recognised as compensation
expense in the profit and loss account over the period in which the
payments vested. The total compensation charge for the three months
ended 31 March 2003 and 31 March 2004 was GBP0.1 million and GBPnil
respectively.
(ii) The Group operates an Inland Revenue approved Savings-Related
Share Option Scheme ("SAYE Scheme"). Under this scheme, options may
be granted at a discount of up to 20%. Under U.K. GAAP no charge is
taken in relation to the discount. Under U.S. GAAP, the difference
between the market value of the shares on the date of grant and the
price paid for the shares is charged as a compensation cost to the
profit and loss account over the period over which the shares are
earned.
Also under U.S. GAAP, an employer's offer to enter into a new SAYE
contract at a lower price causes variable accounting for all existing
awards subject to the offer. Variable accounting commences for all
existing awards when the offer is made, and of those awards that are
retained by employees because the offer is declined, variable
accounting continues until the award is exercised, forfeited or
expires unexercised. New awards are accounted for as variable to the
extent that the previous, higher priced options are cancelled.
The total expected compensation cost is recorded within equity
shareholders' funds as unearned compensation and additional paid in
share capital, with unearned compensation being charged to the profit
and loss account over the vesting period. The total compensation
charge for the three months ended 31 March 2003 and 31 March 2004 was
GBP0.2 million and GBP0.1 million respectively.
(iii) Under U.S. GAAP, goodwill with an indefinite useful life is not
amortised but is tested for impairment annually. Under U.K. GAAP
goodwill is amortised on a straight line basis over its useful
economic life.
The Group had unamortised goodwill of GBP7.7 million at 31 March
2004, which is no longer amortised under U.S. GAAP but will be
assessed for impairment annually. Amortisation expense related to
goodwill, under U.K. GAAP, was GBP0.5 million for the three months
ended 31 March 2003 and 2004.
(iv) Adjustment to reflect interest amounts capitalised under U.S.
GAAP, less depreciation for the period.
(v) In 2000 and 2001 the Group concluded a number of infrastructure
sales in the form of 20-year indefeasible rights-of-use ("IRU") with
characteristics which qualify the transactions as outright sales
under U.K. GAAP. Under U.S. GAAP, these sales are treated as 20-year
operating leases. The adjustment reflects the recognition of profit
under U.S. GAAP on the sale of IRUs concluded in prior years.
(vi) The Group has received warrants from certain suppliers in the
ordinary course of business. Under U.K. GAAP, warrants are treated as
financial assets and recorded at the lower of cost or fair value.
Hence for U.K. GAAP purposes the warrants have been recognised at
nil. Under U.S. GAAP, the warrants are recorded at fair value with
unrecognised gains and losses reflected in the profit and loss
account.
(vii) In accordance with SAB 101 "Revenue Recognition in Financial
Statements", for the three months ended 31 March 2003 and 2004,
customer installation revenues together with attributable direct
costs are recognised over the expected customer relationship period.
At 31 March 2004, the cumulative increase in net losses under SAB 101
was GBP0.8 million, representing cumulative deferred installation
revenues of GBP52.4 million and costs of GBP51.6 million.
(viii) During the quarter ended 30 September 2002, the Group recorded
charges of GBP443.8 million under U.S. GAAP to reflect the impairment
of goodwill, network and non-network fixed assets, resulting in a
GAAP difference of GBP107.2 million. For the three months ended 31
March 2004 depreciation in the amount of GBP2.8 million was recorded
in respect of the assets which had not been impaired for U.S. GAAP
purposes.
(ix) The Group operates a number of employee share schemes on
which it incurs employer payroll taxes. Under U.K. GAAP, the cost of
employer payroll taxes is recognised over the period from the date of
grant to the end of the performance period. Under U.S. GAAP, the cost
is recognised when the tax obligation arises.
b. Effects of conforming to U.S. GAAP - impact on net equity
At 31 March 2004
GBP'000 $'000
Equity shareholders' funds under 821,799 1,512,110
U.K. GAAP
U.S. GAAP adjustments:
Adjustment for deferred (10,832) (19,931)
compensation (i), (ii)
Unearned compensation (i), (213) (392)
(ii)
Additional paid in share 11,045 20,323
capital (i), (ii)
Amortisation of intangibles 6,524 12,004
(iii)
Warrants (vi) 734 1,351
Payroll taxes on employee share 385 708
schemes (ix)
Impairment (viii) 90,364 166,270
Profit on sale IRUs (v) (17,462) (32,130)
Capitalised interest, net of 36,783 67,681
depreciation (iv)
Deferred profit on installations (759) (1,397)
(vii)
Approximate equity shareholders' 938,368 1,726,597
funds under U.S. GAAP
(i) - (ix) See note a. for description and adjustment.
c. Effects of conforming to U.S. GAAP - stock options
At 31 March 2004 the Group had certain options outstanding under its
Option Plan. As permitted by SFAS No.123, "Accounting for Stock-Based
Compensation", the Group elected not to adopt the recognition
provisions of the standard and to continue to apply the provisions of
Accounting Principles Board Opinion No.25, "Accounting for Stock
Issued to Employees," in accounting for its stock options and awards.
Had compensation expense for stock options and awards been determined
in accordance with SFAS No.123, the Group's loss for the three months
ended 31 March 2004 would have been GBP26.8 million ($49.3 million).
Operating Statistics
Q1 03 Q1 04 Growth
Customers (at end of period)
North Region 4,799 5,796 21%
Central Region 6,070 7,213 19%
South Region 5,447 5,813 7%
16,316 18,822 15%
Customers (at end of period)
Corporate 15,387 17,841 16%
Wholesale 929 981 6%
16,316 18,822 15%
Switched Minutes (million) (for quarter)
North Region 1,444 1,605 11%
Central Region 2,717 3,752 38%
South Region 931 1,092 17%
5,092 6,449 27%
Private Wire VGEs (000) (at end of quarter)
North Region 9,104 11,179 23%
Central Region 9,012 11,993 33%
South Region 3,643 5,298 45%
21,759 28,470 31%
Headcount (at end of quarter)
North Region 1,694 1,536 (9%)
Central Region 1,550 1,370 (12%)
South Region 1,198 928 (23%)
4,442 3,834 (14%)
North Region comprises Belgium, Denmark, Ireland, The Netherlands,
Sweden and UK. Central Region comprises Austria, Germany and
Switzerland. South Region comprises France, Italy, Portugal and
Spain.
Customers represent the number of customers who purchase network and
data solutions products.
Headcount comprises active employees excluding temporary and contract
workers.
Forward Looking Statements
This report contains "forward looking statements" including
statements concerning plans, future events or performance and
underlying assumptions and other statements which are other than
statements of historical fact. The Group wishes to caution readers
that any such forward looking statements are not guarantees of future
performance and certain important factors could in the future affect
the Group's actual results and could cause the Group's actual results
for future periods to differ materially from those expressed in any
forward looking statement made by or on behalf of the Group. These
include, among others, the following: (i) any adverse change in the
laws, regulations and policies governing the ownership of
telecommunications licenses, (ii) the ability of the Group to expand
and develop its networks in new markets, (iii) the Group's ability to
manage its growth, (iv) the nature of the competition that the Group
will encounter and (v) unforeseen operational or technical problems.
The Group undertakes no obligation to release publicly the results of
any revision to these forward looking statements that may be made to
reflect errors or circumstances that occur after the date hereof.
This information is provided by RNS
The company news service from the London Stock Exchange