Strong demand for IP-based data communication networks helped UK-based enterprise telco Cable & Wireless Worldwide announce first half pre-tax profits up 141% to £53m.
Although its first-half performance was affected by public sector budget cuts, CEO…
Strong demand for IP-based data communication networks helped UK-based enterprise telco Cable & Wireless Worldwide announce first half pre-tax profits up 141% to £53m.
Although its first-half performance was affected by public sector budget cuts, CEO Jim Marsh said the group had benefited from a number of strategic contract wins, including an agreement to deliver the UK Government’s global overseas network.
“Demand for our strategic product set continues to be good, as enterprises increasingly leverage IP-based data communication networks,” said Marsh.
The company also announced a contract with UK supermarket chain Tesco to provide hosted telephony solutions and managed data centre services for its banking and insurance arm.
Under the agreement, Tesco Bank will use CWW’s high-speed next-generation network to handle customer service calls for its centres in Newcastle and Glasgow.
A spokesperson for CWW declined to disclose the size of the deal, but a source close to the company said it was of huge strategic importance and worth tens of millions of pounds. The source added that CWW sees its data services as a “key driver and an absolute focus” of its business.
Indeed, in the six months to 30 September 2010, some 76% of CWW’s gross margin was derived from what it calls its “strategic product”, such as IP, data, hosting and applications, compared with 71% for the corresponding period last year.
CWW posted EBITDA up 4.4% to £214m for H1 2010, compared with £205m for H1 2009. Revenue lowered to £1.12bn, compared with £1.14bn last year.
Earlier this year, CWW was swamped in rumours that it was talking to mobile operators AT&T, Verizon and Singtel about a potential takeover.
The company declined to comment on the market speculation.
