Cable & Wireless revenues down 9pc on the year
Strong competition and a negative exchange rate movement are understood to be blamed for knocking Cable & Wireless off the path to recovery. For the first quarter to 30 June, the company revealed that group revenue of £798m sterling was down 9pc on the same quarter last year. Compared with the previous quarter this year, revenues were down 2pc.
Cable & Wireless' net cash balance was £1.4bn sterling, reflecting a focus on working capital. Gross debt was £887m sterling.
"Group revenue was lower in the first quarter compared to the previous year reflecting the continued negative impact of exchange rate movements in our national telcos together with weakening carrier services revenue in continental Europe and ongoing competitive pressure in Japan and Asia. The decline in Group revenue in the first quarter against the previous quarter was principally due to lower UK revenues," Caio said.
By John Kennedy