CWC.L Share News (CWC)

LONDON (Alliance News) - Cable & Wireless Communications PLC Thursday maintained its guidance for the full year as it posted declines in revenue and pretax profit in the half year ended September 30.

The telecommunications company posted revenue of USD935 million in the half, down 3% from USD963 million in the previous-year half. Although mobile revenue grew 3%, fixed line revenues continued to be damaged by declining traffic and lower rates.

Earnings before interest, tax, depreciation and amortisation grew 3% to USD298 million from USD288 million.

"Growth in mobile revenue and EBITDA of 3% for the group was a strong result given competition and other market challenges we faced," said exiting Chief Executive Tony Rice in a statement.

Phil Bentley will succeed Rice as chief executive officer from January 1. Bentley previously worked as Managing Director at British Gas and also served at owner Centrica PLC.

Pretax profit was USD35 million, down 35% from USD55 million, hampered by exceptional charges for cost reduction activities. Operating costs dropped to USD383 million from USD401 million in the previous year.

The company said that it was now focusing its business on the Caribbean and Latin America as the region has gross domestic product growth rates that are much higher than developed markets, but low levels of penetration in their communications markets. It intends to grow in the region both organically and through investment in some key growth sectors including mobile data and fibre broadband.

Cable & Wireless declared an interim dividend of 1.33 cents per share, in line with the previous year, and said it expects to deliver a full year dividend of 4 cents.

Shares in Cable & Wireless rose 2.3% to 47.55 pence Thursday morning.

By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews

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