C&W admits it’s still struggling

21 Jul 2004

UK telco Cable & Wireless (C&W) today reported revenues of GBP798 million for the three months to the end of June 2004, down 18% on the corresponding period of 2003, blaming the fall on weakening carrier services revenues in continental Europe and ongoing competitive pressure in Japan and the rest of Asia. Turnover from its core UK operations was flat at GBP406 million, down GBP2 million, which the company blamed on ‘increased pressure on pricing’ in its key market for switched voice services. Revenues from C&W’s carrier services operations in Europe, Japan and Asia fell by GBP42 million to GBP116 million, whilst income from its Caribbean activities was down 16% at GBP140 million. C&W chief executive Francesco Caio warned that the increasingly competitive operating environment in the UK would do little to ease pressure on margins over the next nine months, although he remains optimistic that the company’s migration towards IP-based products, coupled with its recent acquisition of Bulldog Communications, will help offset the perceived ongoing decline in demand for its legacy services.

United Kingdom, Cable & Wireless (UK)