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C&WC Reports Profit Growth

May 22, 2013 |
LONDON --

Key Highlights

  • Total Group EBITDA of US$905 million – ahead of prior year and outlook
  • TContinuing Group EBITDA of US$589 million – Panama up 8% in H2 versus H1
  • TUnderlying equity free cash flow up 11%, restated net debt down in H2 to US$1,508 million
  • TGroup strategy progressed significantly through agreed disposals
  • TPaved way for unified business structure
  • TTarget US$100 million cost reduction and improved Caribbean EBITDA margin
  • TRecommended final dividend per share of US2.67 cents, full year dividend per share of US4 cents

    Commenting on the Group results, Tony Rice, Chief Executive of Cable & Wireless Communications Plc, said: “2012/13 has been a milestone year for Cable & Wireless Communications. The agreements to sell our Monaco & Islands and Macau businesses have reshaped the Group and we have achieved the goal of structural coherence that we set ourselves at the demerger of Cable & Wireless in 2010. The Group is now focused on a single region with low penetration for data services and strong growth potential where we have scale and market leadership. This focus will create a more unified, effective and cost-efficient Group. It will enable us to transform how we operate our businesses as we create an organisation structure and operating model that addresses the demands of a data driven market and can be scaled for growth. We have set a new target to drive US$100 million of savings, 13% of our existing operating expenditure, which will improve margins and cash flow, particularly in our Caribbean business.

    “In what was a dynamic and busy year I am pleased with our financial performance. EBITDA finished slightly ahead of expectations, mobile data revenue continued to grow across the Group, benefitting from the investments we made in our networks in 2011/12, and our cash generation saw double digit growth year on year. We begin the 2013/14 year with a strong foundation and a clear direction.”

    Outlook
    We are focused on both organic and inorganic opportunities to drive growth in EBITDA and cash generation. For continuing operations we expect:

  • T2013/14 Group EBITDA to be similar to 2012/13
  • TUS$100 million cost reduction across the Group achieved on a run rate basis within two years 
  • Anticipated cash cost to deliver between US$150-200 million
  • TCaribbean medium term EBITDA margin target of greater than 30%; region with highest proportionate ownership
  • Targeted investment in high speed networks leading to capital expenditure of approximately US$300 million in 2013/14
  • Dividend for 2013/14 of US4 cents a sustainable level capable of progressive growth

    Cable & Wireless Communications plc



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