25th May 2006, London. Today Cable & Wireless plc announces its results for the year ended 31st March 2006 revealing a strong performance from Cable & Wireless International.
Harris Jones, Group Managing Director, International said: "I am pleased to report a solid set of financial results due to our unrelenting focus on mobile and broadband, supported by tight management of operating costs."
Revenues for C&W International increased by 6% year on year to £1.2 billion, as strong performance in the growth areas of mobile and broadband more than offset declines in fixed line revenues.
The solid performance translated to growth in EBITDA1, underlying operating profit and operating cash flow. EBITDA grew by 6% to £417 million and operating profit grew 3% to £333 million, resulting in operating cash flow of £245 million.
Cable & Wireless International is leader in 18 out of the 22 markets in which it provides mobile services, and in the past year, despite increasing competition, has increased its total mobile customer base by 22%. Strong customer demand for mobile services, driven by C&W's compelling propositions and brand development, led to a 17% increase in mobile revenues.
A similar growth in demand for broadband services resulted in a 97% increase in customer base and a 72% year on year growth in revenue. Cable & Wireless is leader in all of the 21 markets in which it provides broadband, and in nine markets it has penetration rates exceeding those in the UK and US. Cable & Wireless continues to drive down prices and increase the speeds of its broadband service, believing that broadband is critical to its future success.
Harris Jones said: "Cable & Wireless International has been through a considerable period of transformation - over the past four years we have seen fierce competition entering many of our markets. We have now reached a stage where 93% of our revenues are generated in competitive markets, and I believe it is fair to say that the impact of liberalisation is in our rear view mirror. With every year, our competitive appetite increases and we deliver more for our customers in every market."
Cable & Wireless International is the world's pre-eminent telecoms provider for small to medium sized economies. It operates in 33 countries around the world, including 14 islands in the Caribbean. The Caribbean businesses make a significant contribution to the financial results of Cable & Wireless International. Across the region, Cable & Wireless' commitment to delivering quality and reliable service to customers resulted in an increase in both mobile and broadband revenues.
Chris Hetherington, CEO C&W Americas & Caribbean, said: "This has been a good year for C&W and a better year for our customers. We have invested £78 million across the Caribbean to improve the customer experience. We have also introduced a range of services such as eTopUp, international pre-pay roaming and Netspeak (our voice over broadband proposition) to meet our customers" developing needs and expectations.
Cable & Wireless has a long history with this region and we are delighted that, despite competition, we continue to be the first choice for customers in almost all of our markets. We are also excited and proud to be sponsoring the ICC Cricket World Cup 2007, and Tempo, the new Caribbean network from MTV. These relationships are a further demonstration of our commitment to the Caribbean."
In January 2006, Cable & Wireless split its business into two distinct operating units, Cable & Wireless UK and Cable & Wireless International. Cable & Wireless UK announced results in line with expectations, demonstrating that the UK business is in the early stages of a dramatic turn-around. The results of C&W plc include the financial performance of both the UK and International businesses.
