Cable & Wireless to cut costs in Caribbean to protect profitabilit

Telecoms group Cable & Wireless reiterated its guidance for full-year core earnings on Friday, in spite of pressure in the Caribbean, where it will cut costs as fewer tourists are using its services.

Domestic fixed line minutes fell by 9 per cent in the first quarter in the Caribbean, while average revenue per mobile user is down 8 per cent.

'In the face of this, we are accelerating and stepping up our cost reduction programmes, though there is a lead time for such actions to take effect,' it said.

Source: http://www.dailymail.co.uk/money/article-1200376/Cable--Wireless-make-cut-backs-Caribbean.html

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Cable & Wireless Confirms FY Despite Caribbean Problem

Caribbean: The downturn in the Caribbean is intensifying in several of the local economies. In the first quarter, we have seen domestic fixed line minutes fall by 9% compared to the same quarter last year which is putting pressure on fixed line revenue. Mobile customer numbers and market share have been holding up although average revenue per customer is 8% down on last year due to lower usage and more competitive pricing. In the face of this, we are accelerating and stepping up our cost reduction programmes, though there is a lead time for such actions to take effect. This includes a recently signed agreement for reciprocal sharing of mobile towers in Jamaica to increase our mobile coverage and reduce network costs. Other developments include the award from one of the largest regional banks of its mobile business exclusively to our LIME operation and the launch of our 3G mobile network in Jamaica providing customers with access to a range of advanced features and services.

source: http://www.cw.com