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

Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021

Most Popular

Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021
A nightmare 1970s scenario for investors is edging closer
Investment strategy

A nightmare 1970s scenario for investors is edging closer

Inflation need not be a worry unless it is driven by labour market shortages. Unfortunately, writes macroeconomist Philip Pilkington, that’s exactly w…
17 Sep 2021