Business overview

Colt is the leading information delivery platform, providing integrated communications, IT and network services and solutions to businesses

overview

The information delivery platform is the unique integration of three key elements

  • Expertise in creating integrated compute and network services supported by advanced systems and processes.
  • 20 carrier-neutral data centres and thousands of IT systems under management.
  • Pioneering Ethernet and IP networks that seamlessly connect 39 metropolitan area networks, over 150 cities and 19,000 buildings and achieves the industry's highest standards in performance, latency and security.

Leveraging people, network and compute assets to deliver for our customers

  • Seamless integration of network, compute and storage
  • Scalable platform able to deliver information and applications on a pay-as-you-consume basis
  • Services that are universally accessible, anywhere, from any device
  • End-to-end service level agreements, facilitated by ownership of network and data centre infrastructure
  • Commercial models to match customers' business needs

Today's IT leaders are focused on what technology can deliver for their businesses. They understand that this requires the mixing and blending of different solutions and that to attain real performance you cannot separate cloud-based services from the network. Colt is uniquely placed to roll-out complex solutions that comprise network, infrastructure, applications, services and IT consultancy. We are constantly looking to build on this advantage. And we have fine-tuned our business to place customers at the centre of everything we do

Trusted by all to be the leading information delivery platform

We make a real difference to our customers' business through:

  • Best-in-class customer experience
  • Truly integrated computing and networking services
  • Exceptional people who always deliver
  • Integrate compute and network services
  • Focus our resources on key growth opportunities/markets
  • Operate seamlessly and transparently across all our markets
  • Simplify how we buy, sell and contract
  • Automate our service and delivery model
  • We have put the foundations in place to seize the growth opportunity

1. A customer facing organisation with consistent systems and processes across geographies

Enterprise Services
Directly serves medium to large sized enterprises(includes MarketPrizm)
Communication Services
Indirectly serves small, medium and large sized enterprises via channel partners (network operators, distributors, service providers, resellers, agents and franchisees)
Data Centre Services
Provides enterprise customers
with large-scale data centre space
Infrastructure Services
Integrated operations for all services
Business Services
Shared services unit

2012 organisational highlights:

  • Enhanced the focus on our customers' needs through the segmentation of our customer base and associated realignment of our direct sales force
  • Accelerated the skills transformation programme to align our expertise with the future direction of the market
  • Strengthened our channel capabilities by launching a franchise channel to meet the needs of small and medium sized enterprises, acquiring ThinkGrid, a channel-focused cloud platform provider, and onboarding new resellers for cloud and compute

2. An evolving portfolio from products and services to solutions, designed to meet our customers' needs

2012 portfolio highlights:

  • Increased the value and number of high value CES contracts: 12 contracts of over €1m annual contracted value (ACV) in 2012 (2011: 8); and 23 contracts of over €2m total contract value (TCV) (2011: 12)
  • Developed a complete suite of hosted communication and collaboration applications integrated with our voice and data network to deliver Unified Communications solutions
  • Launched the next generation Colt ftec data centre, offering customers space, power and cooling flexibility
  • Developed a new service foundation platform to deliver innovative solutions that combine dynamic provisioning, automated workflow and intelligent fault-management across our network and IT services
  • Launched a world class SIP trunking solution for interconnection with carriers and mobile operators
  • Enhanced the scalability of our Ethernet platform for customers

3. An expanding next generation infrastucture

2012 infrastructure highlights:

  • Added 2,000 square metres of data centre space with a 20th data centre site in the Netherlands and new modular space in Paris
  • Added c.1,000 new buildings to the Colt fibre network taking the number connected to 19,000
  • Added points of presence in 10 new cities across Europe, including Keflavik in Iceland
  • Made significant further network investments, including doubling the core IP backbone capacity, expansion of the network across Europe and improving low latency routes between key financial trading hubs including new routes between London-Zurich and London-Milan
  • Launched a new sub-sea fibre cable offering linking Colt's Dublin city network, via London, to Europe
  • Upgraded our IP Access and IP VPN services onto an IP Multiprotocol Label Switching (MPLS) network
  • Implemented the first sites of our modular evolution to our multi-service platform (MSP) for Ethernet and IP services. The innovative modular approach allows multiple vendors to provide different components with the customer benefiting from increased scalability, reduced costs and faster development of new features
  • Launched trading infrastructure services across Asia through MarketPrizm

At a capital markets day in May 2012 Colt outlined its targets for growth. We highlight our progress in 2012:

Five year target2012 progress
Group revenue 5-year CAGRMid-to-high single-digit growthReturned to Group revenue growth for the first time in seven years
Group EBITDA 5-year CAGRGrowth consistent with
revenue growth
Maintained EBITDA profitability above 20% during a period of investment in transformation and growth of the business
Strategic investments in networks, data centres and portfolio development€350m - €420m incremental investment in strategic growth areas€87.7m invested in data centre space, network expansion, development of managed IT platform and IT systems capabilities

Five year revenue summary

Five year EBITDA summary

Cash & deposits and debt summary

Cash flow*

2012 financial highlights:

  • Colt grew revenue for the first time in seven years. Group revenue grew by 2.6%, reflecting growth across all major product categories with Voice revenue stabilising in 2012 (1% growth versus 8% to 12% declines in the previous four years)
  • EBITDA before exceptional items grew by 0.5% to €333.6m despite a period of investment in the transformation and growth of the business
  • Net funds reduced from €343.7m in 2011 to €280.1m in 2012, reflecting increased investment in the business and working capital movements
  • In December 2012 Colt announced a programme to accelerate skills transformation to support growth in the areas of managed network and IT revenue while aligning costs related to our legacy business and protecting profits while investing in the business

We are building on our strengths to enable innovation and deliver next generation services that make a real difference to our customers and partners. We are also focused on further improving the skills and capabilities of our people. We will continue to invest in the business, particularly in network expansion, data centre site expansion, service delivery and portfolio development, to harvest profitable growth opportunities.

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