Colt’s CEO, Rakesh Bhasin, has admitted that the company’s performance in 2014 left a lot to be desired as the infrastructure specialist moved away from low-margin business.
Revenue declined 5.1% to €1.49bn (£1.08bn) and EBITDA declined 8.4% year-on-year. Colt said that the decline was mainly due to a planned withdrawal of select low-margin voice contracts. The telecoms company reported a 45.8% decline in pre-tax profit to €23m.
“Our performance in 2014 did not deliver what we set out to achieve, but we begin 2015 with reasonable momentum and a focused organisation,” said Bhasin. “Our priorities for the year ahead will be on the continued focus and simplification of the business, delivering the turnaround in our IT Services business and generating positive operating cash flows.”
Colt is well aware of the challenges it faces with its traditional voice business and as such, has spent much of the last year streamlining its priorities. The company now has four central pillars: Network, Voice, Data Centre and IT Services.
“Our strategy is defined by three priorities: a focus on key markets, delivering an exceptional customer experience and optimising the use of our assets,” Colt said in a statement.
“We expect the completion of the transformation in 2015 should result in improved performance towards the end of the year.”