KCOM to miss trading expectations as enterprise arm stutters

Firm says enterprise business has performed 'weaker than originally expected'

KCOM's share price fell more than 38 per cent this morning after the firm said it will miss trading expectations.

In a statement to the London Stock Exchange KCOM said that a "weaker than originally expected performance" is the result of flat revenue in its enterprise arm, and "customer churn" in its network services arm.

The firm now expects its EBITDA for the period ending 31 March 2019 to be around five per cent lower than expected, while net debt will be 10 per cent greater than expectations.

KCOM appointed a new CEO in Graham Sutherland last month, after incumbent Bill Halbert announced his resignation in February.

Results published in June, for its last financial year, saw KCOM miss on revenue expectations but overachieve with profits. EBITDA was up one per cent year on year.

The enterprise arm was flagged as a contributor to the revenue miss, particularly as a result of a slowdown in public sector business.

Today, KCOM also warned that EBITDA for the year ending 31 March 2020 will be "significantly below" current market expectations.

The firm will publish interim results next week. KCOM's share price fell 38.5 per cent this when the London Stock Exchange opened this morning.