CWW maintains FY guidance; focuses on cash generation

17 Feb 2012

Cable & Wireless Worldwide (CWW) has maintained its full year 2011/12 outlook on the back of third-quarter results that were in line with management expectations, as well as continued customer acquisition and retention across all sectors, but warned that market conditions remain challenging. UK-based CWW announced in an interim management statement and business review that it will focus on delivering sustainable cash generation and returns from capital invested, while aiming to reduce business complexity, build internal capability and reduce operational expenditure. It is also on track to increase hosting capacity in the UK. ‘My first three months at CWW have reconfirmed my initial view that this is a business with significant assets including a strong blue chip client base and a dedicated workforce committed to delivering for our clients in challenging market conditions,’ commented the firm’s CEO Gavin Darby, adding: ‘I aim to address our recent underperformance by re-focussing our objectives on cash generation and return on capital whilst continuing to deliver for our customers… I recognise that we still have much more to do to realise the potential of CWW but we have made a good start in the last three months.’

Earlier this week British mobile giant Vodafone Group confirmed it was examining a potential bid for CWW. Such a move, it is thought, is driven in part by the benefits that Vodafone could see by acquiring CWW’s fixed line network, which could bolster bandwidth for customers’ increasing demand for data services.

United Kingdom, Cable & Wireless Worldwide