Cable & Wireless’ earnings soared by double digits as the telco firm prepares for a merger with Liberty Global.
Cable & Wireless reported sales of $595m for the quarter ending 31 December 2015. This marks a growth of one per cent, or three per cent on a like-for-like basis.
The firm’s quarterly earnings before interest, taxes, depreciation and amortisation rose 16 per cent to $238m, with ebitda in the year to date up eight per cent.
Cable & Wireless shares were down 2.5 per cent by midday, and the stock is down 17.8 per cent since the start of 2016.
Why it’s interesting
Cable & Wireless is about to be gobbled up by its bigger rival Liberty Global.
The £3.5bn merger, announced in October last year, is set to give Liberty a stronger foothold in the Caribbean - but the deal has yet to meet regulatory approval.
Cable & Wireless announced today that regulatory processes over the acquisition are “ongoing” and that documents were expected to be completed in the second quarter.
What they said
Phil Bentley, Cable & Wireless’ chief exec, said:
We continue to transform our business to become the region’s leading quad-play operator, and I am confident that revenue growth will increase, as we build the platform for sustainable, profitable growth in the coming years.