CWC records slump in reported net profit for FY12 on exceptional items

24 May 2012

UK-based Cable & Wireless Communications (CWC) has released its financial results for the year ended 31 March 2012, with the company posting a 3% year-on-year drop in adjusted net profit to USD326 million. However, with the company recognising a non-cash impairment and accelerated depreciation charge of USD244 million in the twelve-month period, which it said was ‘primarily due to [its] difficult market position and poor financial performance in Jamaica as indicated in [its] Q3 results,’ reported net income stood at just USD26 million, representing a decline of 92% against the previous financial year.

Revenues for FY2012 totalled USD2.875 billion, up 18% against FY2011, with the most recent turnover including a first-time contribution of USD352 million from the Bahamian business acquired by CWC in April 2011. The company also highlighted strong growth in Macau, where it said handset sales and mobile service revenue drove a 39% y-o-y increase in total turnover. Group earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 3% to USD901 million in the year ended 31 March 2012, while operating profit before exceptional items was USD557 million, up from USD530 million a year earlier.

In operational terms, at the end of March 2012 CWC reported a total mobile subscriber base of 4.741 million across all of its regions of operation, down from 4.746 million twelve months earlier. Broadband access and fixed line voice connections, meanwhile, stood at 553,000 (up 4% y-o-y from 534,000) and 1.408 million (up 7% from 1.320 million) respectively.

Commenting on the company’s plans for future growth, CWC’s chief executive officer Tony Rice said: ‘Mobile data has clearly emerged as an exciting growth engine for our businesses. Penetration of smart devices is up from 14% of our customer base at the start of the year to 24% at the year end with mobile data revenues growing everywhere. We’ve made significant investments in high speed networks, systems and connectivity. That, together with our full-service multi-play capability, the quality of our management and our market leading positions leaves us well placed to benefit further.’

United Kingdom, Cable & Wireless Communications (CWC, incl. Columbus Int.)