CABLE & WIRELESS Communications has said booming demand for smartphones pushed it to a forecast-beating first half profit of $163m (£102m), a nine per cent year-on-year spike.
Its stock closed up 7.5 per cent after soaring as much as 15 per cent, paring back some of the losses it has made since its demerger from Cable & Wireless Group last year. The firm said the iPhone helped it treble its smartphone sales in the last year, leading to a surge in high-margin data usage.
Revenues for the year jumped 24 per cent to $1.4bn, with its businesses in Macau, Monaco and the Maldives performing particularly strongly.
It also said its key Caribbean market is stabilising after being rocked by torrid economic conditions.
Chief executive Tony Rice told City A.M. he is “feeling good” about the results but warned that a double-dip recession could yet derail its growth plans. He said: “We have a business that we feel is in a position to grow and prosper, with the right infrastructure in place. Smartphone penetration in some of our markets is still relatively low – there is a lot of slack for us to pick up.”