However, Cable & Wireless posted a 9% decline in first half year revenues from GBP1.72 billion to GBP1.56 billion reported over the same period last year. The company attributed this loss to its shift in focus on large customers with higher IP services margin and shedding of lower margin customers.
In contrast, BT group, competitor to C&W, reported a decline of 29% in net income from GBP475m to GBP339m in its first half year ending September 2007. Revenues, however, grew by 3% to GBP5.1 billion over the same period. BT Group is undergoing restructuring and has spent GBP216 m in its half year period.
C&W reported declining operating cost which reduced by GBP67m as a result of withdrawal from the UK residential broadband market in June 2006. The withdrawal enabled the company reduce sales, marketing, and personnel costs. As a result, EBITDA for the group rose 29% to GBP284m in this period. This has also allowed C&W to raise its full year EBITDA target between GBP585m and GBP610m from the previous range of GBP573m to GBP608m.
The company is on track to meet the target of having GBP2 billion pounds in annual revenue from Europe, Asia and US division and a double digit operating margin by 2011, said Tony Rice, finance director at C&W.
C&W also announced signing of new contracts with companies including Vodafone and Virgin Media in the first half of 2007.
Source: ComputerWire daily updates
