Operating profits at Cable & Wireless Communications (CWC) slumped by nearly a half to $95m (£56m) as the leading telecoms provider to Latin America and the Caribbean continued to struggle. Although its mobile, broadband and TV revenues grew - including a 23 per cent rise in mobile-data sales - those gains were offset by falling demand for its fixed-line telephone and enterprise products.
The decline did motivate CWC to slash its operating costs by 5 per cent to $763m, which widened its cash-profit margin to about a third. The company also revamped its strategy to focus on the growth markets in telecoms: mobile, TV, broadband and business services. The first step in its transformation will be 'Project Marlin', its plan to invest an extra $250m in its mobile networks over the next three years, including capital spending of $1.05bn.