UPDATE 2-Macau, Maldives offset weak Caribbean for C&W Comms

* Says started the year well, trading in line

* Caribbean remains challenging, Q1 trading was soft

* Shares up 2 percent

(Adds details, quotes)

LONDON, July 21 (BestGrowthStock) – British telecoms firm Cable &
Wireless Communications (CWC.L: ) enjoyed a good start to the year
due to solid performances in Macau and the Maldives, offsetting
the continuing problems in its key Caribbean market.

C&W Communications said on Wednesday the group had traded in
line with expectations, despite its struggles with falling
tourist numbers, a weak economy and strong competition in the
Caribbean.

Shares in the group were up 2 percent in early trading,
ahead of the wider telecoms index, which was up 1.4 percent.

“We have not seen any improvement in the underlying
economies in the Caribbean,” the group said, adding that it had
had to introduce promotional programmes which diluted the
average revenue generated per user.

“Macau and Monaco & Islands are both performing well backed
by more favourable economic conditions,” the company said.
“Panama is seeing stronger economic growth which is helping the
business to perform to expectations.

C&W Communications (CWC) split from the former Cable &
Wireless group this year. The remaining business, now called
Cable & Wireless Worldwide, warned on profits on Tuesday due to
British government spending cuts. [ID:nLDE66J09A]

“As I highlighted in May, conditions remain challenging in
the Caribbean and the trading performance continued to be soft
in the first quarter,” C&W Communications Chief Executive Tony
Rice said in a statement.

“Our focus across the business remains on maintaining and
growing market share, managing costs and generating cash to
achieve our expected outcome for the year.”

The group said the number of mobile subscribers in the
Caribbean had risen by 4 percent on the same quarter last year
and it maintained market share, but the revenue from each user
still fell due to increasing competition.

The average revenue per user in Macau rose due to higher
roaming fees from the increasing number of visitors and the use
of data services to search the Internet. The Monaco & Islands
unit was boosted by a strong performance in the Maldives.

Panama was trading broadly in line with expectations, as an
increasing number of mobile subscribers offset the lower revenue
per user.

Analysts said the performance was in line with forecasts and
said the comments on the Caribbean were no worse than expected.

Stock Report

(Reporting by Kate Holton; Editing by Michael Shields)

UPDATE 2-Macau, Maldives offset weak Caribbean for C&W Comms