Cable & Wireless Communications Reports a Milestone Year
LONDON -- Cable & Wireless Communications -- the full-service international telecommunications company that arose from the demerger of Cable & Wireless in 2010 -- published its results for the year ending March 31, 2013 this morning, and revealed what it described as a "good performance in transformational year." Unfortunately, the results have so far transformed the share price downwards, by around 2%.
Group EBITDA was 1% up on 2012, at $905 million, on revenue that had increased by 2% to $2,887 million. But continuing operations saw revenue decline 3% to $1,942 million, owing to the exclusion of a number of disposals across the group, aimed at focusing the business and enabling $100 million of cost reductions.
Adjusted earnings per share were up 2%, at $0.066, and the board is recommending a final dividend of $0.0267, bring the full-year dividend to $0.04, which the company believes represents a sustainable level of payout, that is capable of progressive growth.
Commenting on the results, Cable & Wireless Communications' chief executive Tony Rice said:
2012/13 has been a milestone year for Cable & Wireless Communications. The agreements to sell our Monaco & Islands and Macau businesses have reshaped the Group and we have achieved the goal of structural coherence that we set ourselves at the demerger of Cable & Wireless in 2010.
The Group is now focused on a single region with low penetration for data services and strong growth potential where we have scale and market leadership. This focus will create a more unified, effective and cost-efficient Group. It will enable us to transform how we operate our businesses as we create an organisation structure and operating model that addresses the demands of a data driven market and can be scaled for growth.
We begin the 2013/14 year with a strong foundation and a clear direction.
Cable & Wireless Communications' share price is now up almost 26% so far in 2013, and nearly 60% on this time last year. If further transformation of the company goes according to plan, that upward trend could well continue. And it's also paying shareholders a generous dividend of close to 6%, one of the highest yields in the FTSE.
If you're looking for some more quality companies for the long-term, you should definitely check out the latest free Motley Fool report, "5 Shares To Retire On." This report contains five top-quality share selections from our team of expert analysts here at The Motley Fool.
The article Cable & Wireless Communications Reports a Milestone Year originally appeared on Fool.com.Jon Wallis has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.