Ascension : Performance from Cable & Wireless International as C&W plc announces its results for Year ended 31st March 2006 Strong
Submitted by The Islander (Raymond Ellick) 17.06.2006 (Article Archived on 29.06.2006)
May 2006, London. Today Cable & Wireless plc announces its results for the year ended 31st March 2006 revealing a strong performance from Cable & Wireless International.
Harris Jones, Group Managing Director, International said: “I am pleased to report a solid set of financial results due to our unrelenting focus on mobile and broadband, supported by tight management of operating costs.”
Revenues for C&W International increased by 6% year on year to £1.2 billion, as strong performance in the growth areas of mobile and broadband more than offset declines in fixed line revenues.
The solid performance translated to growth in EBITDA1, underlying operating profit and operating cash flow. EBITDA grew by 6% to £417 million and operating profit grew 3% to £333 million, resulting in operating cash flow of £245 million.
Cable & Wireless International is leader in 18 out of the 22 markets in which it provides mobile services, and in the past year, despite increasing competition, has increased its total mobile customer base by 22%. Strong customer demand for mobile services, driven by C&W’s compelling propositions and brand development, led to a 17% increase in mobile revenues.
A similar growth in demand for broadband services resulted in a 97% increase in customer base and a 72% year on year growth in revenue. Cable & Wireless is leader in all of the 21 markets in which it provides broadband, and in nine markets it has penetration rates exceeding those in the UK and US. Cable & Wireless continues to drive down prices and increase the speeds of its broadband service, believing that broadband is critical to its future success.
Harris Jones said: “Cable & Wireless International has been through a considerable period of transformation - over the past four years we have seen fierce competition entering many of our markets. We have now reached a stage where 93% of our revenues are generated in competitive markets, and I believe it is fair to say that the impact of liberalisation is in our rear view mirror. With every year, our competitive appetite increases and we deliver more for our customers in every market.”
Cable & Wireless International is the world’s pre-eminent telecoms provider for small to medium sized economies. It operates in 33 countries around the world, including the Caribbean, Panama, Macau, the Channel Islands and Monaco, as well as many islands in the Indian, Pacific and Atlantic Oceans. It is committed to providing the people and Governments of these countries with world-class telecommunications services and infrastructure, coupled with an unrivalled customer experience.
Richard Dodd, Chief Executive, Monaco and Islands, said: “The businesses in this region make a significant contribution to the financial results of Cable & Wireless International. The significant increase we have seen in mobile and broadband revenues across the region has made this a good year for Cable & Wireless and it has been even better for our customers.
We have launched a new mobile service in the Falklands, started building strategic submarine cables into the Channel Islands and Maldives linking to the C&W global network, and secured our full service position in the Seychelles by acquiring the country’s leading Internet Service Provider (ISP), ‘Atlas’.”
In January 2006, Cable & Wireless split its business into two distinct operating units, Cable & Wireless UK and Cable & Wireless International. Cable & Wireless UK announced results in line with expectations, demonstrating that the UK business is in the early stages of a dramatic turn-around. The results of C&W plc include the financial performance of both the UK and International businesses.
The full announcement for C&W plc annual results (year ending 31st March 2006) is available on www.cw.com
About Cable & Wireless
Cable & Wireless is one of the world’s leading international communications companies. It operates through two stand-alone business units – International and UK.
Cable & Wireless International operates integrated telecommunications companies in 33 countries offering mobile, broadband, domestic and international fixed line services to residential and business customers, with principal operations in the Caribbean, Panama, Macau, Channel Islands and Monaco.
Cable & Wireless UK provides enterprise and carrier solutions to the largest users of telecoms services across the UK, US, continental Europe and Asia, and consumer and small business broadband services in the UK through Bulldog.
For more information about Cable & Wireless, go to www.cw.com <http://www.cw.com>.
Communications, Cable & Wireless International