C&W Comms incurs further costs to improve efficiency, flexibility

Telecoms group Cable & Wireless Communications said it is on track to hit its guidance of flat earnings this year, but will take a further 20m dollars in one-off restructuring costs.

Telecoms group Cable & Wireless Communications said it is on track to hit its guidance of flat earnings this year, but will take a further 20m dollars in one-off restructuring costs.

The company said that, in line with the outlook given at the start of the financial year, group earnings before interest, tax, depreciation and amortisation (EBITDA) performance for the year ending March 31st will be "similar" to 2011/12. In the previous year, EBITDA totalled $901m, while revenues were $2,875m.

The firm said that mobile data revenue grew strongly across the group during the third quarter, helped by increasing smartphone adoption and usage.

However, as part of the re-shaping of its Pan-American region, C&W Comms said it has accelerated some investments designed to reduce costs and improve services for customers, which includes upgrading fixed line infrastructure in Barbados and Cayman, "revitalising" retail operations in Barbados and "transforming" engineering operations in other Caribbean island.

These investments will increase the firm's exceptional restructuring costs this year by $20m to $55m.

"These and other initiatives will improve the efficiency and flexibility of the business and drive cost savings in future years which is critical as market conditions in the rest of the Caribbean remain difficult, particularly in the Eastern Caribbean and Barbados," the group said.

Net debt by the end of December stood at $1,549m, down $39m over the first quarter.

The firm said that its proposed disposals of its Monaco & Islands business and Macau division are still progressing towards completion.

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

A simple way to profit from the next big trend change in the markets
Investment strategy

A simple way to profit from the next big trend change in the markets

Change is coming to the markets as the tech-stock bull market of the 2010s is replaced by a new cycle of rising commodity prices. John Stepek explains…
14 Jan 2021
Forget austerity – governments and central banks have no intention of cutting back
Global Economy

Forget austerity – governments and central banks have no intention of cutting back

Once the pandemic is over will we return to an era of austerity to pay for all the stimulus? Not likely, says John Stepek. The money will continue to …
15 Jan 2021
Here’s why markets have shrugged off the US political turmoil
Investment strategy

Here’s why markets have shrugged off the US political turmoil

Despite all the current political shenanigans in the US, markets couldn’t seem to care less. John Stepek explains why, and what it means for your mone…
7 Jan 2021