Colt Reports Profit of €62.3M

Transformed our organisation structure to drive revenue through three customer-centric units

Introduced innovative, market leading compute and data centre services for both our enterprise and indirect customers and continued to lead in pan-European Ethernet network services

Increased our vertical sector capabilities through the acquisition of MarketPrizm

Full year revenue declined by 1.9% to €1,554.3m as Voice declines continued to offset growth in Data and Managed Services

- Data revenue growth of 0.5%. Ethernet continues to grow in excess of 10% largely offset by legacy data product declines
- Managed Services revenue grew by 7.9% over 2010 driven largely by data centre revenue
- Voice decline of 7.7% driven by regulatory-led reductions in termination rates. Carrier Voice returned to growth in H2 2011

Restructuring programme largely complete and on track to deliver annualised net cost savings in line with €20m target

EBITDA up slightly with higher margins and restructuring benefits offsetting lower revenue

Capex increased by €47.7m due to continuation of investment in expanding our data centre and network footprint and capacity

Rakesh Bhasin, Chief Executive Officer, commented: "2011 was a transformational year for Colt. We are pleased with the financial performance having aggressively driven forward our new organisation model, simplifying the way we do business while remaining totally focused on serving our customers. We are Europe‘s leading information delivery platform and the hard work by our team in 2011 lays a strong foundation to return to revenue growth."

BUSINESS OVERVIEW
We successfully completed our reorganisation (initiated in January 2011) to a customer focused structurewhich has been welcomed by both our customers and employees. We created three business units, leveraging shared assets to better serve our customers, all supported by an ITIL-based service delivery organisation which integrates IT, Technology and Operations. These business units include:

Colt Enterprise Services (CES):CES serves medium to large sized corporates within the financial, public, media and professional services sectors through our information delivery platform. Services include Managed Networking, Managed IT services and Unified Communication solutions. Through this platform we combine assets, people and tools to deliver an integrated, seamless service across the compute, storage, network, applications / operating services. CES is developing an innovative portfolio of managed services which integrates compute, storage and network resources that allows different consumption models for our customers.

Colt Communication Services (CCS)CCS provisions services through indirect sales channels to small and medium sized businesses as well aslarge national and international service providers, carriers and system integrators. Our services are offered through branded and unbranded products, offering our customers an alternative to building their own infrastructure. During the year CCS focused on expanding our network reach, developing more robust channels to market to serve and penetrate our customer base as well as a high degree of automation in our service delivery processes, making it easier for our customers to do business with us.

Colt Technology Services Group Ltd