DAVIS CITING STRONG growth in Jamaica's broadband and mobile services, and broadly across its 26 markets, Cable & Wireless International (C&WI) announced a seven per cent rise in revenues to 1.23 billion.
In fact, Jamaica was three points ahead of the pack with 47 per cent growth in mobile customers and a strong showing in broadbank services.
"Our business in Jamaica went from strength to strength, said Chris Hetherington, chief executive of Americas and the Caribbean.
C&W International, which comprises fixed-line, mobile and broadband operations in 32 countries, notably the Caribbean, had a 44 per cent growth in mobile, surpassing the five million milestone for the first time to March 2007.
Broadband customers grew to 400,000, up 39 per cent across 26 markets. The mobile and broadband growth helped boost operating profit to 277 million, up 6.0 per cent.
The local telecom, however, was cagey on its financials, though president and CEO Rodney Davis signalled they would be pleasing.
"Jamaica's contribution to the overall results of Cable & Wireless International for the 2006/07 year is extremely positive," Davis told the Financial Gleaner, but the precise numbers would have to await the filing of C&WJ's earning's report with the stock exchange, he said yesterday.
Those comments came alongside the British telecoms group's announcement in London of a 20 per cent jump in its core earnings to beat forecasts.
C&W which also issued a confident outlook, was at the same time also beating back rumours that it was targeted for takeover but acknowledged a 'steady stream of gentle approaches' for certain assets.
"As far as we know, there's no one out there stalking us," Group Finance Director Tony Rice told reporters. "There is no imminent bid activity as far as we are concerned."
C&W remains in the midst of an overhaul, with plans to cut United Kingdom (U.K.) 3,000 jobs over five years.
On the international side of its operations, however, it is building out its infrastructure under a plan to boost market share.
In its financial year ending March, CWI capital investments were up 25 per cent to 168 million (J$22.7 billion).
"The focus is on extending CWI's mobile networks and ensuring that 90 per cent of the broadband network is cpable of offering at least 8Mbps by December 2007.
The last reported numbers for C&W Jamaica's mobile market was 600,000. Davis earlier this month refused comment on the numbers, saying it was against policy to disclose market information.
The group said its recovery plan was progressing well and was ahead of schedule and unveiled core earnings forecasts for next year at the top end of market forecasts.
It posted underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of 492 million (US$972 million) for the year to March 31, helped by its international business and cost cuts in the U.K.
Analysts were on average expecting the company to report EBITDA of 453 million, reported Reuters, with estimates ranging between 432 million and 477 million.
The U.K. business, now renamed Europe, Asia & U.S., posted underlying EBITDA of 159 million, ahead of forecasts, and C&W forecast that rising to 210-220 million in the year to end-March 2008.
The company said group EBITDA would rise to between 573 million and 608 million next year, with its more profitable C&W International unit forecast to report EBITDA between US$840 and US$860 million.
business@gleanerjm.com
