C&WC unveils first post-demerger results; Caribbean-wide IPTV rollout under consideration

5 Nov 2010

UK-based Cable & Wireless Communications (CWC) is considering the launch of IPTV services across a number of the countries in which it operates in the Caribbean in the second half of its 2010/11 fiscal year, BNamericas is reporting. Tony Rice, the company’s CEO, unveiled the plans during a conference call to discuss the company’s first financial results since it was officially established as a standalone company on 26 March 2010 as part of the demerger of UK-based Cable & Wireless (C&W). ‘Our range of services has grown with TV, broadband and mobile data offerings, opening the way for triple-play, and I think in the next year quadruple play,’ the executive said, and while speaking specifically about the launch of quad-play services in the Panamanian market he noted: ‘A year ago if you’d asked me I would have said it was never going to happen because people procure mobile in a different way to other services … Triple-play is producing good returns. Pay-TV is going great but most interestingly our broadband market share has gone from 60% to 70% on the back of triple-play, so that proves that triple-play does cut churn and does offer the scope to recover market share that you’ve lost to a new entrant.’

In the first six months of its current fiscal year the company posted a 2% year-on-year increase in group revenue, to USD1.159 billion, while earnings before interest, tax, depreciation and amortisation (EBITDA) were USD424 million, a 4% annual increase that CWC said was driven by strong performance from operations in Macau and Monaco & Islands. Profit before tax, however, fell 4% against the same period a year earlier, to USD210 million.

Commenting on the post-demerger performance, Mr Rice said: ‘We have delivered a solid set of first half results. Second half momentum is supported by a strong enterprise pipeline, and our full year expectations remain unchanged … In our first six months as an independent company, Cable & Wireless Communications has laid strong foundations for growing and developing the business and I am pleased with the progress we have made against the strategy we laid out at the time of our demerger.’