KCOM earnings fall

KCOM Group's revenues fell to £165.3m in the six months to the end of September - 7.1% down on a year ago.

Before exceptional items, EBITDA fell 14% to £32.0m and pre-tax profits were down 28% at £17.7m.

On a reported basis, pre-tax profits fell by 33.5% to £16.1m.

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.

"Within our Enterprise segment, there is an ongoing shift towards more complex high value customer solutions. We are becoming recognised as a trusted technology partner for organisations looking to exploit communications and IT services to achieve their business ambitions. We are in the process of implementing such solutions for Bupa, Association of Train Operating Companies (ATOC) and Shoosmiths, while strengthening also relationships with other key customers, such as HMRC and National Farmers Union Mutual (NFUM).

"Within Hull and East Yorkshire, our accelerated fibre deployment continues to achieve market leading take-up rates and we remain on target to make ultrafast services available to two thirds of our customer base by December 2017. The Group's interim dividend will be 2.00p per share and we re-confirm our commitment to a minimum full year dividend of 6.00p per share for this and the next financial year."

At 9:53am: (LON:KCOM) KCOM Group PLC share price was -3.62p at 111.38p