C&W bucks recession and grows revenues 16pc

21 May 2009

Global telecoms operator Cable & Wireless (C&W) is bucking the recession and has reported revenues for the year up 16pc to £3.6bn sterling.

Globally, the company has reported a 49pc increase in EBITDA to £326m sterling.

The company is to provide a 13pc increase in the full-year dividend, giving shareholders £8.50 sterling per share.

“Each of our businesses has produced another strong set of results,” said Richard Lapthorne, chairman, C&W. “Worldwide has improved every aspect of its performance with growth in EBITDA and trading cash flow.

“This performance reflects management’s commitment to customer service, the managed IP product set and continuing strong cost management. Moreover, the integration of Thus, which we acquired in October 2008, is going well and is on track to deliver the synergies that we expected.

“We’re well aware that the recession provides a degree of uncertainty, but our current view is that we have a robust set of plans that will allow us to progress further in 2009/10. Consequently, we’re guiding to an increase in EBITDA to over £1bn sterling and we expect a substantial increase in cash generation.”

Despite the strong results, C&W is taking no chances in the present economy, and last year postponed its value realisation plans until “a sustained period of normality” has returned to the credit and equity markets.

“In the meantime, we’ll continue to execute our plans, growing shareholder value as we go,” Lapthorne said.

By John Kennedy