Cable & Wireless annual profit rises

20th May 2015 10:06

Telecoms service provider Cable & Wireless Communications said it was still some way of realising the potential of the business, despite an encouraging performance across the board.In the year to 31 March, the FTSE 250 group reported a 7.14% increase year-on-year in earnings before interest, tax, depreciation and amortisation to $585m (£378m), while revenue grew 4% to $1.75bn.The group's gross margin improved and operating costs declined 2%, although net profits plummeted to $253m from $859m as proceeds on disposals fell by approximately two thirds.As part of its $1bn investment plan, Cable & Wireless bought Panama-based Sonitel for $16.5m and Columbus International for $3.03bn and sold its Monaco Telecom business for $445 in May 2014 and its stake in Solomon Telekom for $16.5m."We have made good progress in executing our strategy and we are beginning to uncover the full potential of our business," said group chief executive Phil Bentley."CWC is on the way to becoming a better company - a genuine quad play operator, with strong market shares in the geographically focused and attractive Caribbean and Latin American markets."Bentley added that the group had registered growth across the board in its financial year, although it described the 1% growth in its broadband business as disappointing."Although we face increasingly competitive conditions within some markets we expect to continue making good progress in growing our revenue and reducing our operating cost base," he said.Cable and Wireless shares were down 3.30% to 66.00p at 10:44 on Wednesday.