Revenue up at Kingston Communications

Losses widen

Shares in Kingston Communications rose five per cent in mid-morning trading despite reporting widening losses for the first half of the year.

Turnover for H1 leapt 44 per cent to £148.7 million compared to the same period last year.

Earnings before interest etc (EBITDA) also increased by 44 per cent to £9.4 million on last year, and by a whopping 129 per cent from quarter one to quarter two in 2001.

But these improvements in EBITDA were offset by related charges concerning investment in its long distance network.

As a result, group operating losses at the alternative carrier increased to £15.0 million from £8.0 million in the first half of last year.

However, the company is confident that its tight rein on overheads will not damage its prospects for growth.

Said chairman Michael Abrahams: "Kingston continues to deliver robust growth despite the tougher economic climate.

"Based on current trends in its business performance, the board is confident that the company remains on track to deliver further growth in the second half of the year," he said.

By mid morning shares were up 5.25p (4.46 per cent) at 123p. ®