CWC reports best revenue growth in five years

20 May 2015

Cable & Wireless Communications (CWC) has reported a 4% year-on-year increase in group revenue to USD1.8 billion in its financial year ending 31 March 2015, saying that such growth reflected its strategic progress. With turnover having increased by USD64 million in the year under review (USD39 million, or 2% year-on-year growth when excluding Panama-based Sonitel), the company highlighted the fact that such figures represented its best revenue growth in five years. Moreover, CWC pointed to the fact that it had recorded higher revenues across its mobile, B2B/B2G and video lines of business, while saying that it had seen ‘encouraging signs’ in the fixed voice arena thanks to refreshed tariffs. Broadband performance, however, was deemed ‘disappointing’, with just 1% growth in this sector, though CWC said it was optimistic that the recent acquisition of Barbados-based telecoms provider Columbus International will address the challenges it faces, particularly in terms of faster network speeds.

EBITDA totalled USD585 million in the twelve months ended 31 March 2015, representing y-o-y growth of 7%. While CWC did report a net loss of USD33 million for the year under review, this was notably lower than the USD130 million loss recorded in the previous fiscal year.

In operational terms, at the end of March 2015 CWC had a mobile subscriber base totalling 3.820 million, up from 3.550 million a year earlier, while fixed voice accesses numbered 1.131 million, compared to 1.072 million at end-March 2014. Fixed broadband connections also increased, rising from 379 million at the end of the previous fiscal year to 658 million, while pay-TV subscribers surged to 460 million from just 67 million. Growth in the fixed voice and broadband and pay-TV sectors can be attributed in part to the inclusion of Columbus customers in the group’s data.

Commenting on the results, CWC chief executive Phil Bentley noted: ‘2014 was a year of transformation and growth for Cable & Wireless Communications. We created a new senior executive team operating out of our new Miami hub. We developed a new vision and strategy for the Group, backed by our USD1 billion ‘Project Marlin’ investment programme. We began to execute a performance improvement plan and deliver our strategy to grow. The team’s hard work has started to deliver results as we saw top-line growth for the first time since demerger and EBITDA margins improve.’

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