Cable & Wireless PLC
04 March 2008
4 March 2008
CABLE & WIRELESS TARGETS GROWTH
Cable and Wireless plc (Cable & Wireless) will reveal its plans for growth in
its Europe, Asia & US business at its analyst and investor event taking place
The new targets for that business for the next five years will set revenue
growth at between 5% and 8% per year and EBITDA growth at between 20% and 25%
per year, with capital expenditure of about 10% of revenue throughout the period
and free cash flow before financing growing to around 50% of EBITDA.
The event will be hosted by John Pluthero, (Executive Chairman of Europe, Asia &
US) and Jim Marsh (Chief Executive Officer of Europe, Asia & US) who will
highlight three important themes:
Firstly, Europe, Asia & US is the only enterprise pure play focusing on service.
It is exceptionally well positioned to capitalise on the powerful trends that
enterprise customers are experiencing such as globalisation, business complexity
and the need for constantly improving business performance. Consequently,
Europe, Asia & US will see strong growth over the coming years;
Secondly, the market place advantage provided by the immediate availability of a
full suite of next generation internet protocol (IP) products, enabled by Cable
& Wireless' Multi Service Platform, which includes the first ever fixed to
mobile convergence solution; and
Thirdly, growth from our capability in Asia and particularly India, where the
Europe, Asia & US business is particularly well placed to benefit from the
growth in these markets.
Further highlights will include:
• Progress compared with the plans set out in February 2006, including
improved service, reduction in business complexity, a much reduced cost base
and better quality earnings;
• The importance of our transformation programme, including the part played
by our Multi Service Platform (our next generation platform) in redefining
our go-to-market model and re-engineering service for customers;
• The importance of new IP products and great service in winning and
retaining customers and helping those customers to develop and grow their
• The new targets for growth in revenue and EBITDA in the Europe, Asia & US
business which are well beyond those previously published; and
• Reiteration of EBITDA guidance for 2007/08.
Europe, Asia & US completed the installation of its Multi Service Platform (MSP)
in October 2006. Our Multi Service Platform improves quality and performance,
reduces costs for both customers and telecoms operators and provides a platform
for new high quality managed IP services. The MSP lays the building blocks for
transforming our business, providing customers with on-line ordering, a self-
service portal, and faster, more predictable delivery times. Working in this way
offers new opportunities for cost reduction and elimination of errors, providing
enhanced standards of care and service.
Future revenue growth for Europe, Asia & US will be driven by customers'
adoption of new applications, fixed to mobile convergence and managed services
as we build on our customer wins to date. New applications include digital
marketing and next generation video-conferencing, applications that are already
being used by our major customers. Many of these applications rely heavily on
our hosting capability and as such we expect growth in our hosting business of
over 20% per year. Aviva, our largest customer, and Royal Sun & Alliance use our
managed service capability across a range of our products and services including
IP contact centres, IP voice and data networking connectivity.
We expect revenue from our India business to grow strongly over the next five
years. This growth will be driven by customers seeking to use our capabilities
across Asia and India, and we already count Aviva and Standard Chartered Bank
amongst our customers.
Jim Marsh, Chief Executive Officer of Europe, Asia & US said 'Earlier than
expected, we're able to talk about growth. We're the only enterprise pure play
telco and we're equipped with the right IP products, services and applications.
Our service is right up there as well. The proof point is an ever lengthening
list of enterprise customers who are very happy to trust us with their telecoms
Commenting further, John Pluthero, Executive Chairman of Europe, Asia & US said
'Today we've set out our plans for the next five years. They're ambitious and
stretching and I've every confidence that we can achieve them.'
This section of the event will last for approximately two hours including Q&A.
John Pluthero, as Executive Chairman of Cable & Wireless International, will
give a short update on Cable & Wireless International. The update will include:
• The framework for improving the performance of those businesses emerging
• The success of our businesses that have adapted to a competitive
environment in their markets;
• Developments in Panama and Jamaica; and
• Reiteration of EBITDA guidance.
John Pluthero said 'Cable & Wireless International is in good shape but we're
going to make it even better. We'll focus on improving the customer experience,
targeting our investment just where it's needed - on better service, coverage
and better capacity. We're confident that we can grow Cable & Wireless
International and improve its profitability'
This section of the event will last for approximately 45 minutes including Q&A.
There will not be any discussion of Central or Group matters including updates
on pensions, dividends, Central costs and future value realisation plans.
The event will be webcast live on the Cable & Wireless website at:http://
An on-demand version will be available later in the day. The live webcast will
be interactive, allowing viewers to participate in the question and answer
About Cable & Wireless
Cable & Wireless is one of the world's leading international communications
companies. It operates through two standalone business units - Europe, Asia & US
The Europe, Asia & US business unit provides enterprise and carrier solutions to
the largest users of telecoms services across the UK, US, continental Europe and
Asia. With experience of delivering connectivity to 153 countries - and an
intention to be the first customer-defined communications services business -
the focus is on delivering customers a service experience that is second to
The International business unit operates integrated telecommunications companies
offering mobile, broadband, domestic and international fixed line services to
residential and business customers, with principal operations in the Caribbean,
Panama, Macau, Monaco and the Channel Islands.
For more information about Cable & Wireless, go to http://www.cw.com
For further information:
Clare Waters Group Director of External Affairs +44 (0) 20 7315 4088
Ashley Rayfield Investor Relations Director +44 (0) 20 7315 4460
Mat Sheppard Investor Relations Manager +44 (0) 20 7315 6225
Rollo Head Finsbury +44 (0) 20 7251 3801
This announcement contains forward-looking statements that are based on current
expectations or beliefs, as well as assumptions about future events. These
forward-looking statements can be identified by the fact that they do not relate
only to historical or current facts. Forward-looking statements often use words
such as anticipate, target, expect, estimate, intend, plan, goal, believe, will,
may, should, would, could or other words of similar meaning. Undue reliance
should not be placed on any such statements because, by their very nature, they
are subject to known and unknown risks and uncertainties and can be affected by
other factors that could cause actual results, and Cable & Wireless' plans and
objectives, to differ materially from those expressed or implied in the
There are several factors that could cause actual results to differ materially
from those expressed or implied in forward-looking statements. Among the factors
that could cause actual results to differ materially from those described in the
forward-looking statements are changes in the global, political, economic,
business, competitive, market and regulatory forces, future exchange and
interest rates, changes in tax rates and future business combinations or
dispositions. A summary of some of the potential risks faced by Cable & Wireless
is set out in the Company's most recent Annual Report.
Forward-looking statements speak only as of the date they are made and Cable &
Wireless undertakes no obligation to revise or update any forward-looking
statement or any other forward-looking statements it may make, contained within
this announcement, regardless of whether those statements are affected as a
result of new information, future events or otherwise (except as required by the
UK Listing Authority, the London Stock Exchange, the City Code on Takeovers and
Mergers or by law).
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