CWC.L Share News (CWC)

- Pre-tax profit falls 36 per cent- Revenue declines three per cent- Cost cutting across the boardCable & Wireless Communications reported a 36 per cent fall in pre-tax profit in the six months through September following exceptional charges related to the company's cost reduction activities. Profit before tax came to $35m, down from the prior year's $55m, as revenues declined 3% to $935m from $963m. Mobile revenue grew 3%, as increasing smartphone usage drove mobile data growth of 29%. Fixed voice revenue continued to be adversely impacted by falling voice traffic and lower rates. Enterprise, data and other revenue declined by 10% but this was largely due to a change in accounting following the outsourcing of the LIME directory businesses.Earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 3% to $298m as Panama returned to growth and the Caribbean achieved a 6% reduction in operating costs. The group recognised a gain of $1bn following the completed disposals of the Islands, excluding the Seychelles, and Macau businesses. Following the disposal of the Islands and Macau businesses, the company is now focused on the Caribbean and Latin America, which are favourable demographics with GDP growth rates in excess of developed markets and communications markets with low levels of data penetration.The firm is targeting $100m cost reduction across its business achieved on a run rate basis within two years. "These results show our core businesses are performing well - providing a strong platform on which we can grow," said outgoing Chief Executive Tony Rice."As I hand over the reins to Phil Bentley, I am confident we have a business well prepared for future growth. I wish him and the rest of our excellent team the very best in delivering that future."Bentley, former Managing Director at British Gas, will succeed Rice on January 1st 2014.RD