CWC reports 16% hike in 3Q15 Ebitda

Communications and entertainment provider Cable & Wireless Communications (CWC) revealed solid figures for 3Q15 in its latest earnings report, announcing that Ebitda climbed 16% year-on-year to US$238mn, while year-to-date Ebitda was up 8% to US$665mn.

"In the third quarter we saw significant EBITDA growth of 16%, underpinned by cost synergies, while Project Marlin [the company's three-year growth strategy] – which have now passed their peak level – continued to improve our network infrastructure, delivering better resilience and speeds to our customers and carrying 104% and 42% more traffic on our mobile and fixed networks, respectively, compared to last year," said CEO Phil Bentley.

CWC's revenues totaled US$595mn for the third quarter, an increase of 1% compared to the same three months of 2014, contributing to revenue of US$1.774bn for the first nine months of the year, up 3%.

Mobile accounted for some 40% of the group's total revenues in 3Q15, up 1%, thanks to 7% growth in the Caribbean driven by a 15% hike in Jamaican subscribers. However, this was offset by a 9% decline in revenues from Bahamas Telecom (BTC).

Broadband subscribers grew 6% in the Caribbean, driving revenue 5% higher than in 3Q14.

Fixed voice generated 14% of total revenue, an 8% year-on-year drop. This was attributed to a faster drop in usage and average revenue per user (ARPU) than expected, particularly in Panama.

Video made up 8% of group revenues in the period, rising 1% year-on-year, while managed services were up 4% in the quarter, reaching 17% of total income, and wholesale brought in 8% of group revenues, after rising 1% year-on-year.

The company invested US$135mn of cash capital expenditure in 3Q15, 24% down on 3Q14. Investment in Q3 was focused on upgrading Panama's LTE and HFC network, as well as rolling out fiber in Jamaica and the Bahamas.

The US$8.2bn acquisition of CWC by US cable company Liberty Global is set to be completed in the second quarter of this year, the company commented in its earnings release.

The deal, under which Liberty Global will acquire CWC's entire share capital, was agreed last November. Regulatory processes in relation to the proposed acquisition are ongoing, but CWC expects them to be completed shortly

Last year, CWC also bought Barbados-based cable TV and broadband provider Columbus Communications, so competition has been intensifying with its main competitor in the Caribbean, Digicel.

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