Feeds

Kingston Comms cops £111m loss

Network write down blamed

  • alert
  • submit to reddit

Top three mobile application threats

Kingston Communications - the telco which operates in Hull - racked up losses of more than £100m last year after the company reassessed the value of its network.

The telco decided to write down the value of its network by a whopping £97.6m. According to a statement yesterday Kingston made the decision "in light of the current market conditions, which have changed significantly since the original investment was made in our network."

As a result, Kingston ran up a pre-tax loss of £111m in the year to the end of March, compared to a pre-tax loss of £20.8m last year. "This is largely due to the accelerated write down of assets and restructuring costs," said the company.

Revenues climbed 4.5 per cent to £293.6m up from £281m in the previous year.

In a bid to drag the telco back into profit Kingston has managed to meet its target to cut costs by £10m. Kingston's done this by "streamlining management structure" and reducing its cost base and other internal re-organisations.

Oh, and Kingston's cost savings have "predominantly been achieved through reducing overall headcount by around 240".

Said chairman Michael Abrahams: "We have taken the decision to accelerate the write down of our network assets, reflecting the significant changes in the market place since the original investments were undertaken."

Kingston now believes it is well placed to deliver a sustainable return to profit by concentrating on the provision of terrestrial telecommunications services, said the company. ®

Related stories

Kingston Comms rejects buy-out talk
VoIP to transform telecoms market
Thus swells - thanks to ADSL

Combat fraud and increase customer satisfaction

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
Facebook splats in-app chat, whacks brats into crack yakety-yak app
Jibber-jabbering addicts turfed out just as Zuck warned
Google looks to LTE and Wi-Fi to help it lube YouTube tubes
Bandwidth hogger needs tube embiggenment if it's to succeed
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.