CWC reports marginal revenue growth in first half of 2015 fiscal year

7 Nov 2014

UK-based telecoms group Cable & Wireless Communications (CWC) has published its financial results for the six months ended 30 September 2014, revealing a year-on-year increase in total turnover.

In the period under review CWC generated revenues of USD848 million, representing 1% growth from the USD841 million recorded in H1 2013/14, with the company noting that it had seen improved turnover in all segments with the exception of fixed voice. Mobile revenue, meanwhile, accounted for more than half of the total, standing at USD461 million, up from USD447 million. Reported earnings before interest, tax, depreciation and amortisation (EBITDA) totalled USD277 million in the first half of the company’s 2015 fiscal year, representing growth of 5% y-o-y, while net profit was USD103 million, reversing a USD8 million net loss in the year earlier period, which it said was a result of ‘headline profitability, no exceptional charges and lower interest costs (USD39 million) following a reduction in gross debt’. Capital expenditure in the six month period was USD190 million, meanwhile, some 81% higher than in the prior year, with this increase attributed to investments in 4G and fibre rollouts; 84% of the total spend was said to have been focused on supporting CWC’s front line operations as it targeted improved network reliability and an ‘enhanced customer experience’.

In operational terms, at the end of September 2014 CWC had a total of 4.134 million mobile subscribers on its books, up by 21% year-on-year from 3.414 million a year earlier, though fixed voice accesses continued to decline, falling by 2% to 1.063 million. Fixed broadband subscriber numbers were up though, standing at 384,000 at end-September 2014, up from 368,000 a year earlier.

Notably, CWC also confirmed that following a strategic review of the proposed sale of its Seychelles unit, and discussions with the Government there, it has taken the business off the market, saying it ‘no longer believes it is in shareholders’ best interest to sell the business in the near term’.

Commenting on the results, CWC chief executive Phil Bentley noted: ‘Although it is early days, it was pleasing to see revenue growth across the Group for the first time as mobile subscribers and data uptake grew. There is no doubt that our networks are faster, and more reliable than ever before – and our customers are beginning to notice a difference. As momentum builds in our investment-led strategy, I would expect growth to accelerate in the second half of the year.’

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