Overall Group revenue grew by 4.1% (2.6% at constant currency). Growth occurred across all major product categories

Data revenue growth of 1.8% reflects the continued take-up of Ethernet services (12.8% growth) more than compensating for the decline in legacy bandwidth services

Managed Services revenue grew by 15.4% including Data Centre Services revenue growth of€6.2m (46.3%)

Voice revenue grew by 4.1% with growth in Carrier Voice (38.1%) exceeding the decline inCorporate and Reseller Voice (11.7%)

EBITDA was €161.8m, with gross profit improvement offset by operating costs from investment in the business. EBITDA benefited from a reduction of provisions for bad debt and voice termination costs totalling €10.0m

Capital expenditure was in line with H1 2011 with programmes focused on network expansion, data centre expansion and product and services development.

Income Statement
Despite continued challenging economic conditions, we are pleased with our financial performance for the half year.

Total revenue of €797.9m (2011: €766.2m) increased by €31.7m or 4.1% (2011: 3.5% decline) with growth across all major product categories. EBITDA increased by €4.6m (2.9%) to €161.8m (2011: €157.2m) and operating profit increased by €2.8m (10.9%) to €28.5m (2011: €25.7m). The Group‟s free cash outflow was €57.8m (2011: €68.8m), including €25.0m of vendor payments carried into H1 2012 due to year end timing issues.

Revenue
Total revenue for the first half of 2012 was €797.9m with growth of 4.1% (€31.7m) compared to the first half of 2011. The increase in Carrier Voice, Managed Services and Data more than offset the decline in Corporate and Reseller Voice. Revenue growth benefitted from currency movements with overall revenue growth amounting to 2.6% on a constant currency basis.

Data revenue increased by €7.1m (1.8%) to €407.7m (2011: €400.6m), driven by a 12.8% increase in Ethernet revenue which more than offset declining revenue from our legacy Data products.

Managed Services revenue, including Data Centre Services related revenue, increased by €13.3m (15.4%) to €99.9m (2011: €86.6m). Data centre revenue grew 46.3% (€6.2m) to €19.6m (2011: €13.4m) due to modular data centre contracts which came online mid year 2011 and the sale of another modulardata centre installed on site at a customer premises during H1 2012. The remainder of the increase was due to an increase in sales activity with enterprise customers.

Colt Technology Services Group Ltd