Colt to cut voice business by 85%

Colt has announced plans to eliminate 85% of its carrier voice contracts, after the company announced it was expecting a €175 million fall in revenues from the unit.

The company – which operates a pan-European network and data centre facilities for large and mid-sized companies – said it expected half of the drop in revenue to take place by the end of 2014.

According to the company, its EBITDA for 2014 is on course to be 5-10% lower than its consensus estimates of €325 million.

Voice revenues have been under pressure over the last year due to cuts by EU regulators, with Colt’s business taking a significant hit.

According to Colt, the restructuring of its voice business could improve the group’s overall profit margins over the next few years.

As part of the move, the company is also expected to pay costs of approximately €30 million in the second half of the year.

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