LONDON (ShareCast) - Hull-based telecoms group KCOM slumped Friday after warning of “revenue weakness” at its Integration & Managed Services business in what is expected to remain a challenging market.

“Over the first quarter the group has delivered improved profitability at all levels, despite lower revenues than in the same period last year,” said the firm in its AGM statement.

“In light of the deteriorating market conditions, our operational focus on cost and capital efficiency will continue and we are targeting further efficiency gains as the year progresses,” it added.

Efficiency initiatives outlined in November are on track.

KCOM said the Telecoms & Internet Services business is still performing strongly with its high level of recurring service revenues and strong cash flows.

Interim results are due on 25 November.

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