CWC, CWW unveil first post-demerger financial results

27 May 2010

Recently demerged UK-based Cable & Wireless Communications (CWC) and Cable & Wireless Worldwide (CWW) have released their respective financial results for the twelve months ended 31 March 2010.

CWC, which focuses on operations in the Caribbean, Macau and Panama, revealed that on the back of economies across the Caribbean stabilising full-year results were in ahead of forecasts made in its demerger prospectus, with the company posting earnings before interest, tax, depreciation and amortisation (EBITDA) of USD908 million, compared to the USD880-900 million guidance; EBITDA on taking out costs associated with the former Central operations of Cable and Wireless was USD866 million. Revenues for the twelve-month period meanwhile were down 4% year-on-year at USD2.35 billion, while profit after tax attributable to CWC’s owners was up 21% at USD304 million. Commenting on the results, Tony Rice, chief executive of CWC, said: ‘We have delivered a good result in what has been a difficult period for all telecommunications companies around the world. Overall EBITDA of USD908 million … represents a margin of 39% with EBITDA improvements in three of our four businesses. Our businesses are well positioned for the future with leading positions in attractive markets allowing us to put communications at the heart of the nations we serve.’

Corporate-focused CWW meanwhile saw results hit by a GBP143 million (USD206 million) pension deficit alongside a GBP54 million write down related to restructuring costs. For the twelve months to end-March 2010 the company posted a pre-tax loss of GBP94 million, although underlying full-year profit before exceptional items was GBP116 million, up from GBP11 million a year earlier. EBITDA for the company was up 32% y-o-y at GBP431 million, in part as a result of the acquisition of Scottish fixed line and broadband provider Thus, while revenues were GBP2.27 million, unchanged from FY2008-09. Jim Marsh, CWW’s CEO, said of the results: ‘These strong trends in gross margin, EBITDA and cash generation speak to the progress we have made in the year. We have built a strong platform for growth.’