Cable & Wireless quarterly revenue rises, reiterates guidance

21st Jul 2015 09:06

(ShareCast News) - Telecoms provider Cable & Wireless Communications reported a 4% increase in revenue in the first quarter and reiterated guidance for its current financial year.In a statement released on Tuesday, the FTSE 250 group attributed the rise in overall revenue to a strong performance in its broadband and video arms, which rose 14% and 11% respectively thanks to a sharp increase in subscribers.The group's managed service division saw a 14% increase in revenue, driven by the company's acquisition of Panama-based Sonitel at the end of the last financial year, while the wholesale arm rose 9% on the back of rising demand.However, the company's fixed voice business saw a 5% decline due to users swapping fixed lines for mobiles, which reduced average revenue per user, while the group's mobile segment was flat, as strong growth in the LIME arm was offset by a decline in its BTC business in the Bahamas."In the first quarter we have made a good start on integration and have maintained momentum through organic growth," said group chief executive Phil Bentley."Cost synergies have been identified and embedded in management targets for the year."Cable & Wireless shares were up 0.07% to 69.00p at 0833 BST on Tuesday.