Cable and Wireless Communications’ shares up on strong Caribbean growth

 
Oliver Smith
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TELECOMMUNICATIONS company Cable and Wireless Communications (CWC) saw a 3.3 per cent rise in its share price yesterday after their third quarter trading update.

CWC, which focuses on telecommunications in the Caribbean and Latin America regions, presented a five per cent group revenue increase to $444m (£291.8m) and a two per cent rise on like-for-like basis.

The telecoms group said mobile revenue jumped 10 per cent in the Caribbean, excluding the Bahamas, and rose four per cent in Panama in the quarter ended 31 December.

Mobile brings in more than half of the company's revenue.

The company’s share price rose to 56.40p at yesterday’s close as the combined amount of mobile subscribers on their business units rose to just under four million, a 12.5 per cent growth since last year.

Chief executive of CWC, Phil Bentley, said: “Investments in our mobile networks have improved coverage and reliability and we saw mobile data grow a further 23 per cent with traffic carried on our networks increasing by over 35 per cent.”

CWC saw a decline in average revenue per mobile, TV and fixed line subscriber numbers but still saw their mobile revenue up four per cent.

The company invested $129m in a network improvement project called Project Malin, which is targeted at improving the reach and speed of the network provided by CWC.

“In the third quarter we have continued to build momentum through our investment-led Project Marlin and we are continuing to deliver top line growth.”

Full year results for the period ending 31 March 2015 are expected to be announced on 20 May this year.