Cable & Wireless Warns On Profits Ahead Of Results

Cable & Wireless Warns On Profits Ahead Of Results

Cable and Wireless this week issued a trading update ahead of its full year results forecasting that the group’s revenues will fall by 10%.

Cable & Wireless chief executive, Graham Wallace, said: “Despite a backdrop of continuing difficult market conditions expected to contribute to a 10% decline in Cable & Wireless Global’s revenue, we are achieving our objectives of reducing the proportion of lower margin business and lowering the operating cost base. As a consequence of managing the business to optimise margins rather than maximising revenue, Cable & Wireless Global is expected to exceed the targeted gross margin percentage and operating cost savings in the second half. This will result in an improvement in Global’s EBITDA of over 80% compared to the first half.”

“Cable & Wireless Regional is expected to continue to deliver good revenue growth in the second half with EBITDA margins over 40% and strong cashflow. Actual cash at the end of January was £6.6 billion with borrowings of £2.6 billion having returned £0.5 billion of capital to shareholders at that time by way of a continuing share buy-back.”

“We continue to focus on improving the proportion of higher margin revenues and reducing capital expenditure and the operating cost base.”

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