CWC.L Share News (CWC)

LONDON (Alliance News) - Cable and Wireless Communications PLC said Friday it is on track to deliver its medium term targets, as it saw a "solid" performance in its first quarter to end-June.

The telecommunications company saw mobile organic revenue flat at constant currency, as mobile revenue growth was hampered by weaker broadband and television revenue growth, and declines in fixed voice revenue.

Mobile revenue, which represents 55% of the company's revenues, was up 4% in the first quarter. In its LIME business, revenue growth was driven by strong subscriber additions in Jamaica, in Cayman after the successful introduction of 4G services and in Panama.

The company also saw average revenue per user growth in Panama for the first time in five quarters, it said, as a result of an increased focus on pricing.

Broadband and television revenue grew 3%, Cable and Wireless said. It expects this area to see its performance improved as a result of its 'Project Marlin' investment programme. The modest growth in this segment was more than offset by the continued decline of fixed-voice revenue, it said.

Revenue in its Business-to-Business and Business-to-Government segments were hit by reduced government activity in Panama ahead of May elections.

Business-to-consumer in the Bahamas saw a solid financial performance, Cable and Wireless said, and it awaits details of the proposed regulatory framework for the introduction of a mobile competitor later in the year.

Cable and Wireless remains on track to achieve its targeted USD100 million in run-rate savings by March 31, cutting operating costs by 4% in the first quarter, as it partly reinvested savings in staff and network costs into advertising.

The company has begun its 'Project Marlin' investment programme, with USD81 million in capital expenditure during the quarter, doubled from a year before. It has upgraded 126 of its mobile sites in Jamaica since April 1, and expects to complete its 4G network in the area later in the year. Its fibre build-out in Cayman is complete, with over 11,000 homes passed.

Cable and Wireless has now passed 26,000 homes with high-speed fibre in Barbados, it said. It has launched its direct-to-home television and 'Movil Cash' products in Panama, and whilst it is early in the programme, it is exceeding its sales expectations.

Cable and Wireless said it expects a greater weighting towards the second half due to higher advertising spend, and the beginning of 'Project Marlin' which is expected to generate revenue in the second half.

Shares in Cable and Wireless were trading up 1.1% at 48.38 pence Friday morning.

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

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