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Colt TV
26 July 2012
© 2010 Colt Technology Services Group Limited. All rights reserved.
Today’s agenda
2
1
H1 Business update
2
Financial results
3
Becoming a solutions led business
4
Q&A
H1 Business update
Rakesh Bhasin
© 2010 Colt Telecom
Technology
Group
Services
Limited.
Group
All rights
Limited.
reserved.
All rights reserved.
Half year headlines
Six months ended 30 June
€ millions
2012 unaudited 2011 unaudited
Movement
Revenue
797.9
766.2
4.2%
EBITDA
161.8
157.2
2.9%
• Revenue growing, but not where we had hoped it would be. Spend
not adjusted in line with revised forecasts
• Cost pressures - increased investment and foreign currency impact
• Solid performance in Carrier Voice but Corporate & Reseller declined
4
Business update
• Half-year growth for the first time in many years
• Pipeline increasing in quality and quantity and larger deals
• Economic uncertainty – higher churn from smaller accounts
• Continued positive sentiment towards our strategy
• More managed solutions sales - Network and IT
• More spend from larger accounts but can lead to “lumpy” revenue
5
External market news
It’s a tough market out there
Missed revenues by 5%
Cut guidance and eliminated 2012 dividends
Drop in profits and cut dividends
6
Six key programmes and TSAT
Six key programmes
Customer satisfaction (TSAT)
Transactional Services Business
Sales process
77%
Speedboat
Service Delivery - new
81%
DCS Expansion
Incident management
74%
Portfolio Management
Billing queries
62%
Profitability
Renewal
90%
Leadership and culture
Total
74%
Making progress but a lot more to do in H2
7
What we need to do now
•
Continue to invest in our strategic agenda
• Understand our customers and deliver what they need –
at speed
•
Share ideas and think differently
• Efficiently execute projects
•
Spend what we really have to – not what’s in our budget
We need to realise revenue faster and continue
to manage our cost tightly
8
H1 results update
Mark Ferrari
© 2010 Colt Technology Services Group Limited. All rights reserved.
H1 financial headlines
Six months ended 30 June
2012 unaudited
2011 unaudited
Movement
407.7
400.6
1.8%
Managed Services
99.9
86.6
15.4%
Voice
290.3
279.0
4.1%
€ millions
Data
•
Data revenue growth reflects continued take-up of Ethernet services but
legacy bandwidth services continue to decline
•
Managed Services revenue increased due to 2011 modular data centre
contracts and an increase in sales activity with enterprise customers
•
Carrier Voice upsurge driven by increased international traffic through new
Voice trading platform. Corporate and Reseller decline due to price pressures
10
How are our business units doing?
Six months ended 30 June
2012 unaudited
2011 unaudited
Movement
479.5
450.8
6.4%
CES
298.8
302.0
(1.1%)
DCS
19.6
13.4
46.3%
€ millions
CCS
•
CCS continues to develop the channel strategy to increase revenue and key
focus remains on business automation
•
CES good progress on Delta & Gamma programme. Increased appetite from
customers to move from a DIY network provision to more of a Managed Service
•
Continued market excitement around our modular product and overall pipeline
increasing. New site acquired in Netherlands with anchor tenant.
11
What the markets say
“Colt have
succeeded where
others have not”
“Colt has
rediscovered growth”
Deutsche Bank
Analyst: Andrew Darley
“A positive H1 trading
update this morning ”
Analyst: Lorne Daniel
12
“Solid H1, story
on track”
Morgan Stanley
A solutions led business
Clark Turabee
© 2010 Colt Technology Services Group Limited. All rights reserved.
Inner Circle
© 2010 Colt Technology Services Group Limited. All rights reserved.
Inner Circle
•
We want a high performance culture
• We will continue to invest in it
•
So, the Inner Circle journey
continues……to Istanbul!
• www.colt.net/innercircle
15
Q&A
© 2010 Colt Technology Services Group Limited. All rights reserved.