Cable & Wireless starting to turn the corner?

26 May 2005

Cable & Wireless has reported its first annual profit in four years after cutting operating expenses and exiting the US and Japan at substantially lower cost than originally expected. Net income for the fiscal year to March 2005 was GBP302 million (USD552 million), compared with a loss of GBP237 million last year. However, the company said that ‘severe price competition’ is hurting sales, as revenue from continuing and discontinued operations fell 12% to GBP3.2 billion.

CEO Francesco Caio revealed that Bulldog Communications – the UK broadband provider acquired in May 2004 – is core to the company’s plans to stem the decline in turnover. Caio said he plans to double the number of BT exchanges in which Bulldog has equipment to approximately 800 by June 2006, and expects the company to make an additional GBP250 million in sales within four years.

United Kingdom, Cable & Wireless (UK)