Cable & Wireless sees mobile growth across the board

Multinational telecommunications company Cable & Wireless saw shares climb slightly this morning after it posted a mobile revenue increase of three per cent, with growth across all regions, in its half-yearly report. (Release)

For the six months ending 30 September, group revenue was down three per cent to $935 million (£581.6m), but mobile data revenue was saw growth of 29 per cent. Jamaican mobile customers increased by 23 per cent.

Panama revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) were also up three per cent, but profit before tax was down 36 per cent in the six months at $35m (£21.7m), from $55m (£34.2m) for the same period last year.

Chief executive, Tony Rice, commenting on the figures said:

Our first half was characterised by an impressive performance in our mobile business and good progress on our cost reduction programme. Growth in mobile revenue and EBITDA of three per cent for the Group was a strong result given competition and other market challenges we faced.

Looking to the future, Cable & Wireless expect the group's EBITDA to be similar to 2012/13 with cost reduction of £62m over the next two years. The group's medium term margin target for Caribbean EBITDA is more than 30 per cent and has targeted investment in high speed networks of $300m (£186m) for 2013/14.