Cable & Wireless Communications, the parent company of LIME in the Caribbean, has announced its financial results for the year to March 31, 2014, and unveiled a new strategy including its plan to invest more than US$1 billion in its fixed and mobile networks over the next three years.
Under a new investment programme named Project Marlin, CWC will increase its capital investment programme by 30%, in the next three years adding a total of $250 million to its standard level capital expenditure.
The new strategy will target top-line growth, with investment in new networks and services like 4G and LTE mobile networks, wifi hotspots, TV services, and business-to-business (B2B) solutions across its operations in Caribbean and Latin America.
The strategy focuses on four key strategic imperatives:
– Mobile leadership
– Fixed-mobile network convergence
– Reinforce TV offering
– Grow business services
Supporting the strategy will be an increased focus on key stakeholder relations with Governments, regulatory and union partners. CWC will also seek to improve its internal processes and culture to increase focus on serving its customers.
CWC also announced its financial performance for the 2013/14 year.
Highlights of the 2013/14 results in its Caribbean business included:
8% rise in earnings before interest, tax, depreciation and amortisation (EBITDA) – the company’s core profit measure Operating costs reduced by US$48 million (8%) following good progress on outsourcing services, exiting non-core property assets and introducing initiatives to reduce power consumption 31% increase in Jamaica mobile customers and US$7 million increase in mobile revenue Mobile data revenue growth of 13% in The Bahamas and 53% in the Cayman Islands and launched of LTE services 8% more broadband customers across the region 21% more TV customers across Barbados, the Cayman Islands
Phil Bentley, Chief Executive of Cable & Wireless Communications, said: “We have developed a new strategic plan to drive top line growth, reversing our historical revenue decline, to leverage our existing networks enhanced by the US$250 million increased investment of Project Marlin; and to drive further operating efficiencies across the portfolio.”
At Group level CWC reported a 23% growth in mobile data revenue, with Group revenue down 1% on a like-for-like basis. Group operating costs fell by 5% (US$43 million) helping EBITDA to increase by 5% to US$608 million.