Feeds

C&W hammered as UK revenues fall

In a right old spin

Intelligent flash storage arrays

Shares in Cable & Wireless (C&W) took a hammering in early trading this morning after the UK telco warned sales had slipped in the first half.

Total revenue in the UK dropped 6 per cent from £810m in the first half of last year to £765m in H1 2005 following a 13 per cent slump in revenues from its retail business, the company said in a trading update today.

It reported that market conditions in the UK "remained challenging" compounded by the shift towards toward IP-based services and the knock-on that has on lower spending on traditional telco services.

What's more, C&W admitted that its planned acquisition of alternative telco Energis has been a distraction and that "since the announcement of the Energis transaction there has also been some loss of momentum in sales planning".

Indeed, the £600m take-over of Energis announced this summer appears to be giving C&W more than a few headaches. The telco now expects the deal to take longer than expected in order to address issues raised by the Office of Fair Trading (OFT).

And the telco is also having second thoughts about taking a knife to the business should it get the go-ahead to merge with Energis.

"Pending (OFT) approval of the Energis transaction, a number of cost reduction initiatives in the UK business have been suspended in advance of a clearer understanding of the requirements of the combined business," said C&W.

The telco had previously announced that 700 jobs would be axed following the merger of the two businesses.

C&W even had a special mention for its broadband ISP Bulldog, which is currently the subject of an investigation by regulator Ofcom following hundreds of complaints from customers.

Once again, C&W blames BT for its troubles but insists that things are improving.

Or as C&W put it: "Bulldog revenue figure for 2005/6 first half is £13 million reflecting the shortcomings of the BT automated process and consequent slower customer provisioning in the first quarter, together with a temporary deferral of sales and marketing efforts while the Ofcom investigation concludes.

"Management focus has been on customer care and we have been encouraged by the improvement in customer care metrics in the period."

By coffee break this morning shares in C&W tumbled 21.75p (15 per cent) to 120p. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.