Cable & Wireless Comms targets Caribbean cost cuts
LONDON May 22 (Reuters) - Cable & Wireless Communications met expectations with a 1 percent rise in full-year core earnings, and said it would cut $100 million of costs from a business now focused on the Caribbean and Central American.
The company, which has sold its Macau and Monaco and Islands businesses, posted earnings before interest, tax, depreciation and amortisation of $905 million for the year to end-March on revenue up 2 percent to $2.89 billion.
Excluding the businesses sold, core earnings were $589 million, also up 1 percent and just ahead of average analyst forecasts of $584 million.
The British company, which provides broadband, fixed line and mobile services, has faced headwinds in Panama and the Caribbean from increased competition and weaker economic conditions, partly due to fewer tourists.
Chief Executive Tony Rice said making $100 million of annual savings, or 13 percent of the group's existing operating expenditure, within two years would improve margins and cash flow, particularly in its Caribbean business.
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