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C&W 1H net profit down on restructuring costs
Posted by:Mark 58 days ago • Discuss
LONDON – British telecommunications company Cable & Wireless PLC said Monday net profit for the first half of the year fell 20 percent because of one-time restructuring costs, which masked an otherwise strong growth in earnings. Shares rallied on the news. Britain's second largest telecoms company after BT Group reported a net profit of 83 million pounds $131 million for the six months through Sept. 30, compared with 104 million pounds a year earlier. The fall was the result of a 60 million pound $94 million hit the company took on major restructuring costs. But shares rallied 7.4 percent as the company's earnings before interest, tax, depreciation and amortization jumped 26 percent, to 357 million pounds $562 million, beating analysts' expectations. The company raised its full-year forecast for operating profit and postponed plans that could split its business units into separate companies. Chairman Richard Lapthorne said the international business had "produced one of its best results in a long time." "We've seen no effect from the broader economic slowdown in the first half," he added. The telecom group now expects EBITDA to reach at least 780 million pounds $1.2 billion for the 12 months ending March 31, 2009 — up from a previously predicted high of 725 million pounds. Total revenue over the six months to Sept. 30 rose 5.8 percent to 1.65 billion pounds $2.6 billion, up from 1.56 billion pounds. Shares rose 7.4 percent to 145 pence $2.28 in early trading on the London Stock Exchange.
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