Cable & Wireless Communications, which in October confirmed that it was in discussions with Liberty Global plc regarding a possible shares and cash offer for CWC, today (05 Nov 2015) announced its half year results.
The communications provider, which operates in 16 countries throughout the Caribbean and Latin America, reported a 4% increase in total group revenues to 1.2 billion US dollars, while adjusted earnings (EBITDA) rose by 5% to $427 million. In its biggest region, the Caribbean, its Jamaica business continued to attract new mobile subscribers (up 161,000 or 22%) and gain market share, leading to 10% revenue growth. In the Bahamas, revenue declined by 5% as management continued to prepare the business for the advent of a second mobile competitor by updating roaming agreements with international carriers.
The company flagged that since completion of the Columbus acquisition, it had made good progress integrating the business into CWC. Management now expects to deliver recurring annualised pre-tax cost savings of approximately US$125 million on a run-rate basis, 47% higher than the previous target. The additional cost savings will come primarily from further headcount reductions and the implementation of the new operating model in Panama and the Bahamas.
The Chief Executive noted that "Our Company has significant growth and synergy potential. Whilst we are in the first phase of our 3 year plan, we are pleased with initial progress and expect to deliver a strong second half and full year performance in line with outlook. We are also pleased to have identified additional synergies, lifting our previous US$85 million expectation to US$125 million whilst maintaining the same anticipated costs to achieve those savings. We remain on track with our 3 year plan and are confident our business model will deliver significant long-term shareholder value creation." The share price rose by 0.5% in mid-morning UK stock market trading.
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