Job losses hit C&W profits
£8m bonuses all round
Posted in Telecoms, 21st May 2009 14:49 GMT
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The cost of sacking hundreds of staff during the integration of Thus meant Cable and Wireless reported full year pre-tax profits down 13 per cent today.
In the year to the end of March, the firm earned £233m on revenues of £3.6bn, up from £3.2bn the previous year.
Restructuring losses from last year's £329m Thus acquisition, and Cable and Wireless' "One Caribbean" programme to integrate its Caribbean telcos, hit £189m. Ignoring exceptional costs, earnings were up 36 per cent.
Chief executive John Pluthero, who it was announced today will bag a £8.3m bonus, predicted further job losses, which have so far reached about 600 in the UK.
He said the restructure would lead to "a substantial increase in cash generation" in the next 12 months. Traders however weren't sold on the firm's growth prospects, and sent Cable and Wireless' stock down 10 per cent. ®
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