Latin region performs poorly for C&W

7 Jun 2004

The Latin American divisions of UK-based Cable & Wireless (C&W) performed poorly in the year to 31 March 2004, although the parent hopes that efforts to restructure its operations will lead to significant savings in the future. The Caribbean region posted a loss of GBP128 million (USD236 million) after incurring a one-off restructuring charge of GBP243 million to, amongst other things, write down a TDMA mobile network and fixed line equipment. The Panama unit reported a loss of GBP3 million after taking a charge of GBP73 million. C&W is facing increased competition in the region as the result of market liberalisation and is taking steps to tackle the challenge head on. However, declines in international call rates have hit the company hard and it is finally moving to improve its focus in the fast growing mobile and data services segments.