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Cable & Wireless Comms targets Caribbean cost cuts

Wed, 22nd May 2013 06:27

LONDON, May 22 (Reuters) - Cable & Wireless Communications met expectations with a 1 percent rise in full-year coreearnings, and said it would cut $100 million of costs from abusiness now focused on the Caribbean and Central American.

The company, which has sold its Macau and Monaco and Islandsbusinesses, posted earnings before interest, tax, depreciationand amortisation of $905 million for the year to end-March onrevenue up 2 percent to $2.89 billion.

Excluding the businesses sold, core earnings were $589million, also up 1 percent and just ahead of average analystforecasts of $584 million.

The British company, which provides broadband, fixed lineand mobile services, has faced headwinds in Panama and theCaribbean from increased competition and weaker economicconditions, partly due to fewer tourists.

Chief Executive Tony Rice said making $100 million of annualsavings, or 13 percent of the group's existing operatingexpenditure, within two years would improve margins and cashflow, particularly in its Caribbean business.