Pre-tax profits down at KCOM as connectivity problems hit

TELECOMS company KCOM has suffered a decline in revenues and pre-tax profits after it was forced to apologise to thousands of customers after connectivity problems over the weekend.

Revenue down to £165.3m for the half year to 30 September from £177.9m whilst pre-tax profits dropped 28% to £17.7m from £24.6m in the same period last year.

The company said capital expenditure will peak this year as it continued to invest in fibre deployment and a major restructure of the business.

The Hull-based company said it expected revenues to continue to decline in the second half of the year in “legacy” areas.

The Hull Daily Mail reported that “several thousand” people lost internet access over the weekend and were still without it on Monday (28 November).

Chief executive Bill Halbert said: “Our transformation continues to progress well. At the beginning of the year, we came together under a single brand enabling us to simplify the way we work. We are investing more in our systems and changing the size and skills of our teams, in order to focus more tightly on our strategic growth areas of Enterprise and Hull and East Yorkshire.

“The disposal of certain national network assets last year was a fundamental part of our journey. The proceeds received gave us the opportunity to increase investment in our focus areas and has enabled us to continue to restructure the business.”