Cable & Wireless posts rise in third quarter earnings

Telecoms provider Cable & Wireless reported a rise in third quarter earnings and revenue, underpinned by cost synergies.

Third quarter earnings before interest, taxes, depreciation and amortisation rose 16% to $238m and year-to-date EBITDA was up 8% to $665m.

Third quarter revenue was up 3% on a like-for-like basis at $595m, while year-to-date revenue was also 3% higher, at $1.77bn.

The company’s smartphone take-up increased nine percentage points to 50%, driving mobile data revenue up 18% from the previous year.

In fixed networks, an additional 20,000 homes were passed with high-speed connectivity, driving 5% and 7% growth in broadband and video, respectively.

C&W said its shift to focus the B2B division away from one-off IT and government projects towards building ongoing relationships with its customers resulted in monthly recurring revenue growth of 4% across its markets since the start of the year.

Chief executive Phil Bentley said: “Overall group year to date like-for-like revenue growth of 3% is solid. We continue to transform our business to become the region's leading quad-play operator, and I am confident that revenue growth will increase, as we build the platform for sustainable, profitable growth in the coming years."

The company said integration plans were on track to deliver the synergy target of $125m by the end of 2017/18.

C&W said completion of its £3.6bn takeover by Liberty Global is expected in the second quarter of calendar 2016, with regulatory processes ongoing.

At 1237 GMT, shares were down 2.1% to 62.25p.