Member Article

Hull-based KCOM looking to the future despite dip in revenue

Hull-based telecoms provider KCOM is looking to the future after a ‘solid’ performance and an increase in key customer contracts, however they are still facing ‘broader revenue challenges’.

The firm posted their half year results in which there was a slight dip in revenue and pretax profit.

Revenue decreased to £173 million from £185 million in the same 6 month period ending September 30.

Pretax profit dipped to £23.6 million compared to £25.7 last year. Despite this, the firm said it was in a strong position for growth in the coming year.

Bill Halbert, chief executive officer, said “The Group continues to make progress in terms of its strategic objectives, in spite of overall revenue performance continuing to be challenged in some specific activities.

“We’re particularly pleased with the overall performance in KC brand, (most notably in the consumer channel).

“Fibre services continue to see strong levels of uptake, well above the UK average, and demand remains ahead of our own initial expectations. Increasingly this investment will allow us to design and introduce advanced fibre-based services.

“The Group remains highly cash-generative and we reaffirm our existing commitment to increase the full-year dividend by 10% per annum through to March 2016.”

This was posted in Bdaily's Members' News section by Clare Burnett .