C&W earnings exceed expectations

C&W said the revamp of its UK business was going well

Telecoms firm Cable & Wireless, which is in the process of restructuring its UK business, has reported half-year earnings ahead of forecasts.

Underlying earnings rose 29% to £284m, although revenue for the six months to 30 September fell 9% to £1.6bn.

The firm, which split itself into two separate units last year, said it had no immediate plans to demerge.

C&W also said that the head of its international division, Harris Jones, would step down at the end of the year.

The international division, which covers 33 countries including the Caribbean and Monaco, reported a 6% rise in underlying earnings to $398m.

However, the firm cut its earnings guidance for the international division by $20m to $820m-$840m following "poor performance in Jamaica".

The Europe, Asia and US (EAU) unit - formerly known as the UK business - beat forecasts with underlying earnings of £99m, and C&W upped its guidance for this division by £35m to £205m-£215m.

The EAU unit is being restructured and C&W said the turnaround was "ahead of our own, and market, expectations".