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Executive summary

Colt delivers reliable carrier and enterprise grade voice services with a focus on customers in Western Europe and, through our recent acquisition of KVH, in Asia. We provide traditional telephony services as well as VoIP to both enterprises and service providers (carriers, cloud service providers).

Value proposition

We focus on multi-country provision, delivering a consistent end-to-end customer experience across Western Europe and Asia to enterprise and wholesale customers. Customers seeking simplified and consistent voice services across multiple geographies benefit from our licensed capability, our local expert people and fast, convenient service delivery. We also help customers transition from traditional legacy telephony to next generation VoIP and voice application services.

Our services

  • Enterprise voice services
    We provide both traditional and next generation voice services. These include lines and calls, unified communications infrastructure and services, inbound connectivity services and contact centre solutions
  • Carrier voice services
    We provide a full range of termination services, both traditional and VoIP

Our customers

We provide a full suite of voice services across 13 Western European countries, while a selection of our services is also available in further territories, including the new countries we have welcomed to the business with the acquisition of KVH. Our enterprise customers are businesses of all sizes in sectors including finance, business services, automotive and media. Our carrier voice customers operate in the telecommunications and cloud service provider verticals.

2014

In 2014 we were particularly encouraged by the developments in our strategic product areas of VoIP and service provider solutions where we grew 27% and 20% respectively, outperforming the market. We successfully planned and executed our strategic withdrawal from low margin carrier voice trading contracts and increased our focus on IN and VoIP businesses.

For 2014, the combination of our withdrawal from low margin carrier voice trading contracts and continued regulatory impacts contributed to a reduction in overall Voice Services revenues of 18.3% (2013: 4.9%). However, the €75.6m decline in carrier voice was driven entirely by the strategic decision to exit low margin carrier voice trading contracts. Enterprise voice revenue demonstrated improving trends, declining by 5.5% in the second half, roughly half the rate of the industry decline. Headline EBITDA was impacted by regulatory declines, reducing 6.1% (2013: growth of 30.8%) but the EBITDA margin improved to 13.3% (2013: 11.6%) with the evolution in the product mix, and should continue this trend with the full annualised effect of the withdrawal from low margin carrier voice trading contracts.

Strategy

The strategy for Voice Services is to drive cash generation through:

  • Focus on key markets: We target multi-country businesses of all sizes, as well as telco and cloud players who currently have limited fixed voice assets. Our investment is focused on our award winning VoIP portfolio and service provider solutions for wholesale customers.
  • Focus on customer experience: We are focused on improving the efficiency of all customer facing processes and customer acquisition cost. In addition, we aim to help our customers transition from traditional legacy systems to next generation voice technology when their business is ready to do so.
  • Focus on asset use: We are focused on fully utilising our voice platforms, particularly with high margin enterprise and service provider voice solutions where possible.

Revenue (€m)

Revenue

EBITDA (€m)

EBITDA

Capital expenditure (€m)

Capital expenditure

Enterprise voice revenue per working day (€m)

Enterprise voice revenue per working day