LONDON (Alliance News) - Cable & Wireless Communications PLC Tuesday reiterated its guidance for its current year to end-March 2016, as it saw revenue rise 4% in its first quarter.
The telecommunications provider said revenue in its mobile segment was flat, as strong growth in its LIME business, driven by added subscribers in Jamaica, was offset by a decline in its Bahamas business BTC. BTC was hit by reduced international roaming rates ahead of a new mobile competitor entering the market later in 2015.
In C&W's Fixed Voice business, revenue fell 5%, which it attributed to pressure from users substituting their fixed lines for mobiles, which reduced average revenue per user.
Broadband revenue rose 14%, and video revenue rose 11%, both driven by subscriber growth. Managed Services rose 14% bolstered by the company's acquisition of Sonitel in Panama in the previous year, and Wholesale revenue grew 9% as rising demand for capacity offset unit price compression.
During the quarter the company said it invested USD158 million, increased 5% from the previous year, as it is combining its legacy business with Columbus International Inc, which it acquired towards the end of its previous year.
"In the first quarter we have made a good start on integration and have maintained momentum through organic growth," said Chief Executive Phil Bentley in a statement. " Cost synergies have been identified and embedded in management targets for the year; a new retail store format has been developed with plans in place to harmonise our product offering under the FLOW brand; and early results from cross-selling initiatives have been positive."
Cable & Wireless expects to announce its interim results for the half year to end-September on November 5.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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