C&W Comms surges as sales jump 24%

FTSE 250 telecoms group Cable & Wireless Communications soared higher on Thursday after reporting a 24% rise in half-year revenue and signs of "stablisation" in the all-important Caribbean division.

Revenue in the six months ended 30 September reached $1.44bn, up from $1.16bn the year before, helped by the first-time contribution of $177m from Bahamas Telecommunications which it acquired in April. Total revenues beat Evolution Securities' expectations by some 10%.

Earnings before interest, tax, depreciation and amortisation (EBITDA) came in 4% higher than last year at $443m.

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However, pre-tax profit fell 31% from $210m to $145m after accounting for a $58m charge related to restructuring in the Bahamas. Earnings per share fell from 3.3 cents to 2.1 cents.

"Despite uncertainties about the world economic environment we are well placed as we enter the second half with each of our businesses expected to trade in the full-year ranges for EBITDA set out at the start of the year," said chief executive Tony Rice.

The Caribbean - which accounts for over a quarter of total revenue - has been a source of difficulty for the group over the past year, as it attempts to deal with rising competition.

"In the Caribbean we have seen signs of a stabilisation in a number of our principal markets, although Jamaica remains difficult. We are, however, encouraged by recent announcements by the Jamaican Government and its intention to create a level regulatory playing field providing Jamaicans with greater choice and value," Rice said.

An interim dividend of 2.67 cents was declared, the same level as last year.

By 15:10, shares were 9.4% higher at 39.92p.

BC