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.
The company reported that revenues in the UK were down 4pc on the previous year but said that the enterprise and business markets remained highly competitive. “The cost reduction initiatives taken in the second half of last year will help to compensate for the pricing pressure we are seeing,” said Cable & Wireless chief executive Francesco Caio.
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