LONDON -- Cable & Wireless Communications (LSE: CWC) -- the full-service international telecommunications company that arose from the demerger of Cable & Wireless in 2010 -- published its results for the year ending March 31, 2013 this morning, and revealed what it described as a "good performance in transformational year." Unfortunately, the results have so far transformed the share price downwards, by around 2%.
Group EBITDA was 1% up on 2012, at $905 million, on revenue that had increased by 2% to $2,887 million. But continuing operations saw revenue decline 3% to $1,942 million, owing to the exclusion of a number of disposals across the group, aimed at focusing the business and enabling $100 million of cost reductions.
Adjusted earnings per share were up 2%, at $0.066, and the board is recommending a final dividend of $0.0267, bring the full-year dividend to $0.04, which the company believes represents a sustainable level of payout, that is capable of progressive growth.
Commenting on the results, Cable & Wireless Communications' chief executive Tony Rice said:
2012/13 has been a milestone year for Cable & Wireless Communications. The agreements to sell our Monaco & Islands and Macau businesses have reshaped the Group and we have achieved the goal of structural coherence that we set ourselves at the demerger of Cable & Wireless in 2010.
The Group is now focused on a single region with low penetration for data services and strong growth potential where we have scale and market leadership. This focus will create a more unified, effective and cost-efficient Group. It will enable us to transform how we operate our businesses as we create an organisation structure and operating model that addresses the demands of a data driven market and can be scaled for growth.
We begin the 2013/14 year with a strong foundation and a clear direction.
Cable & Wireless Communications' share price is now up almost 26% so far in 2013, and nearly 60% on this time last year. If further transformation of the company goes according to plan, that upward trend could well continue. And it's also paying shareholders a generous dividend of close to 6%, one of the highest yields in the FTSE.
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