Feeds

Cable & Wireless restructures and warns on profits

And watches shares fall

Boost IT visibility and business value

Cable & Wireless watched its share price fall more than 15 per cent this morning after it warned that profits would be lower than expected and waved goodbye to its chief executive.

Francesco Caio is to leave the company at the end of the financial year because there will no longer be a post of group CEO. The company is being split into two divisions - UK (including Bulldog) and international.

Caio said: "Over the last three years we have transformed Cable & Wireless from an unfocused business into a group of telecom operators relevant in each of their markets. This has been achieved against a background of unprecedented change in the industry....notwithstanding the continued pressures, particularly in the legacy voice market, the robust performance of the former Energis business together with the promising progress that is being made with Bulldog means that we continue to have confidence in the medium-term financial objectives for the UK business announced last November."

John Pluthero will be UK group managing director and chairman from the start of the new financial year. Jim Marsh will be chief executive of UK business. For the international division, Harris Jones will be group managing director and chief executive, while Lord Robertson becomes chairman of international but keeps his job as deputy chairman of the group. Richard Lapthorne is group chairman.

The company also warned that Ebitda is likely to be no higher this year than last. The company blamed continued margin erosion, high levels of churn, and quicker movement from legacy to IP networks. Costs associated with the restructure were also blamed.

There will be a further market update on February 28.

Read the whole statement on C&W's website here.®

Maximizing your infrastructure through virtualization

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.