4th Mar 2008 07:01
Cable & Wireless PLC04 March 2008 4 March 2008 CABLE & WIRELESS TARGETS GROWTH Cable and Wireless plc (Cable & Wireless) will reveal its plans for growth inits Europe, Asia & US business at its analyst and investor event taking placetoday. The new targets for that business for the next five years will set revenuegrowth 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 periodand 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 willhighlight 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 thatenterprise customers are experiencing such as globalisation, business complexityand 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 afull suite of next generation internet protocol (IP) products, enabled by Cable& Wireless' Multi Service Platform, which includes the first ever fixed tomobile convergence solution; and Thirdly, growth from our capability in Asia and particularly India, where theEurope, Asia & US business is particularly well placed to benefit from thegrowth 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 businesses; • 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 platformfor new high quality managed IP services. The MSP lays the building blocks fortransforming our business, providing customers with on-line ordering, a self-service portal, and faster, more predictable delivery times. Working in this wayoffers new opportunities for cost reduction and elimination of errors, providingenhanced 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 servicesas we build on our customer wins to date. New applications include digitalmarketing and next generation video-conferencing, applications that are alreadybeing used by our major customers. Many of these applications rely heavily onour hosting capability and as such we expect growth in our hosting business ofover 20% per year. Aviva, our largest customer, and Royal Sun & Alliance use ourmanaged service capability across a range of our products and services includingIP contact centres, IP voice and data networking connectivity. We expect revenue from our India business to grow strongly over the next fiveyears. This growth will be driven by customers seeking to use our capabilitiesacross Asia and India, and we already count Aviva and Standard Chartered Bankamongst our customers. Jim Marsh, Chief Executive Officer of Europe, Asia & US said "Earlier thanexpected, we're able to talk about growth. We're the only enterprise pure playtelco 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 lengtheninglist of enterprise customers who are very happy to trust us with their telecomsneeds." 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 andstretching 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, willgive a short update on Cable & Wireless International. The update will include: • The framework for improving the performance of those businesses emerging from liberalisation; • 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'regoing to make it even better. We'll focus on improving the customer experience,targeting our investment just where it's needed - on better service, coverageand better capacity. We're confident that we can grow Cable & WirelessInternational 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 updateson pensions, dividends, Central costs and future value realisation plans. Webcast The event will be webcast live on the Cable & Wireless website at:http://www.cw.com An on-demand version will be available later in the day. The live webcast willbe interactive, allowing viewers to participate in the question and answersessions. About Cable & Wireless Cable & Wireless is one of the world's leading international communicationscompanies. It operates through two standalone business units - Europe, Asia & USand International. The Europe, Asia & US business unit provides enterprise and carrier solutions tothe largest users of telecoms services across the UK, US, continental Europe andAsia. With experience of delivering connectivity to 153 countries - and anintention to be the first customer-defined communications services business -the focus is on delivering customers a service experience that is second tonone. The International business unit operates integrated telecommunications companiesoffering mobile, broadband, domestic and international fixed line services toresidential 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 currentexpectations or beliefs, as well as assumptions about future events. Theseforward-looking statements can be identified by the fact that they do not relateonly to historical or current facts. Forward-looking statements often use wordssuch as anticipate, target, expect, estimate, intend, plan, goal, believe, will,may, should, would, could or other words of similar meaning. Undue relianceshould not be placed on any such statements because, by their very nature, theyare subject to known and unknown risks and uncertainties and can be affected byother factors that could cause actual results, and Cable & Wireless' plans andobjectives, to differ materially from those expressed or implied in theforward-looking statements. There are several factors that could cause actual results to differ materiallyfrom those expressed or implied in forward-looking statements. Among the factorsthat could cause actual results to differ materially from those described in theforward-looking statements are changes in the global, political, economic,business, competitive, market and regulatory forces, future exchange andinterest rates, changes in tax rates and future business combinations ordispositions. A summary of some of the potential risks faced by Cable & Wirelessis 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-lookingstatement or any other forward-looking statements it may make, contained withinthis announcement, regardless of whether those statements are affected as aresult of new information, future events or otherwise (except as required by theUK Listing Authority, the London Stock Exchange, the City Code on Takeovers andMergers or by law). 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