First Look

Cable & Wireless Jamaica returns to profitability

FlowJamaica | 2016-02-24 00:00:00

Cable & Wireless Jamaica Limited returned to profitability for the first time in  8 years  during the third quarter of the financial year which ended December 31, 2015. An 8% increase in total revenue resulted in net profits of $144 million generated during the Christmas quarter. This revenue performance was based on a 22% increase in mobile revenues and an 11% increase in broadband revenues over the same prior year to date period. The Mobile base increased by 125,000 subscribers or 15%, while broadband subscribers increased by 3% on a fiscal year to date basis.

Meanwhile, administrative expenses fell by 16% during the quarter, due to a 17% reduction in employee related expenses and a 15% decline in administrative and marketing expenses, as a result of its operational efficiency programme.

The company’s earnings before interest, tax, depreciation and amortization (EBITDA), which measures its ability to meet its short and medium term obligations, jumped by 59% when compared with the same prior year period, based on the performance of its combined business lines and despite the many service challenges it encountered according to its financial report for the period.

Commenting on the results, the company’s Chief Executive Officer Garry Sinclair suggested that its mobile strategy continues to be driven by its status as the best mobile voice and data value in the market.

Sinclair also noted that providing wide access to the most feature filled and affordable mobile devices directly led to the increase in the number of mobile customers recorded during the period under review. He added that the mobile communications company would continue to invest in its island wide networks and intended to introduce an LTE mobile experience in select areas across the country in order to ensure that it provides customers with the best mobile experience possible.

Elaborating on the performance of residential broadband services, Sinclair said that the company intended to add another 65,000 ports by the end of March 2016. This investment he said would be continued into the new fiscal year, as the company seeks to make sure that it is the first choice for Jamaicans who want to access this important service across the country.

Turning to the Enterprise, SME and Government segments of the company’s business, the chief executive officer pointed out that there was a year over year reduction in equipment sales and maintenance, although the all important data solutions business climbed by 4% when compared with the previous year. Sinclair added that the nature of the company’s contract pipeline, work in progress and procurement timelines usually results in the booking of a number of transactions during the last quarter of the fiscal year.

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