Investment drive eats into KCOM profit

26th Nov 2013 08:07

- Interim profit hurt by increased investment- Expects revenue to be hit by up to 5m pounds in regulatory changes- Confident in long-term prospectsHull-based telecoms group KCOM posted a 5.4 per cent decline in first-half profit, as it pumped money into its infrastructure and broadband fibre deployment services. Pre-tax profit fell to £25.8m for the half year ended September 30th from £26.2m while revenue slipped to £185.5m from £188.7m the same time a year earlier.It expects to take a revenue hit of up to £5m and earnings before interest, taxes, depreciation and amortisation (EBITDA) of up to £2m from regulatory changes, including the outcome of the wholesale narrowband market review.In a separate statement KCOM said it intends to split the roles of Chairman and Chief Executive. From April 1st 2014, Bill Halbert, currently Executive Chairman, will assume the role of Chief Executive and Graham Holden, the role of Non-Executive Chairman. Looking ahead to future trading, Halbert said: "We remain confident about the group's longer term prospects and success and expect the full year out-turn to be in line with market expectations."CJ