C&W Worldwide profits spike despite UK recession
Cable & Wireless Worldwide today reported a 380% rise in profits in the year to end-March, after what the CEO described as its “coming of age.”
Post-tax profit of £211 million (€247 million) was up significantly on the £44 million reported in 2009, driven mostly by managed services contracts in the UK enterprise and public sector markets.
However, revenues fell marginally from £2,268 million in 2009, to £2,265 million, due to the recession in the UK, regulatory changes, and downward pressure on the firm’s voice and legacy systems.
Regardless, CEO Jim Marsh said the firm has “built a strong platform for growth,” in the coming years, after it met its own targets by growing EBITDA 32% year-on-year to £431 million.
He said the firm would continue to invest in its global network, by completing its Europe/India Gateway, and participating in the deployment of the West Africa Cable System.
“These investments strengthen our position in a number of emerging markets,” Marsh stated.
The CEO is confident the firm will meet its targets for EBITDA growth and cash generation over the next 12 months, noting it already generates 72% of its margins from data.
Richard Heap, head of Telecoms at global accountancy firm BDO, told Telecoms Europe.net the results show C&W Worldwide has turned a corner, adding that the firm is “quite rightly positioning itself in the emerging markets, such as India and West Africa, and moving itself further away from the predominantly UK business it once was.”