Cable & Wireless Communications (LON:CWC) is making progress on the sale of its 49% stake in Telecommunications Services of Trinidad and Tobago (TSTT) as well as certain assets in Barbados, its CEO Phil Bentley said during an earnings call earlier…
Cable & Wireless Communications (LON:CWC) is making progress on the sale of its 49% stake in Telecommunications Services of Trinidad and Tobago (TSTT) as well as certain assets in Barbados, its CEO Phil Bentley said during an earnings call earlier today.
The company agreed to divest the TSTT stake within 18 months to gain Trinidad & Tobago regulatory approval on its US$1.85bn acquisition of Barbados-based cableco Columbus .
The company has appointed advisors, carried out the valuations, and is reviewing “early expressions of interest”.
However, the CEO pointed out that, since TSTT is partly government-owned, no decision can be taken before Trinidad and Tobago’s general elections, which will be held in early September.
According to local media, the company has also received 14 expressions of interest in the overlapping network assets resulting from the merger between Lime Barbados and Flow Barbados.
The company, which is currently focused on Columbus integration and the rebranding of the Lime business as Flow, posted a 4% rise in first quarter revenues, which totalled US$583m.
The CEO said results are in line with the group’s 2015 outlook.
“In the first quarter we have made a good start on integration and have maintained momentum through organic growth. Mobile revenue was flat against the prior year and good progress was made in broadband and video.[…]; and early results from cross-selling initiatives have been positive. Based on the first quarter’s trading we maintain our guidance for the year,” Bentley said.
Revenues across the Caribbean grew 10%, offset by a 9% decline in CWC-controlled Bahamas Telecommunications Company (BTC) due to reduced roaming rates.
A new entrant will soon provide alternative services to BTC in the Bahamas, although the company still does not know which player it will be.
The Bahamas government aimed to award the new licence by the end of the year, but a spectrum auction has not yet been held.
As of 30 June 2015, group net debt stood at US$2.6bn, an increase of US$239m since 31 March 2015.
According to the company, the increase in net debt was primarily due to costs associated with the acquisition of Columbus and a scheduled pension top-up payment of £31 million.
