Half Yearly Report

ANNOUNCEMENT

3 November 2011

CABLE & WIRELESS COMMUNICATIONS PLC HALF YEARLY REPORT

FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2011

Cable & Wireless Communications on track with first half results

EBITDA is defined in the footnotes on the following page, a reconciliation of EBITDA is provided on page 27

Adjusted EPS is before exceptional items, gains/(losses) on disposals, amortisation of acquired intangibles and transaction costs

Commenting on the Group results, Tony Rice, Chief Executive of Cable & Wireless Communications Plc, said:

"We had a good first half and are on track for the full year. The underlying performance in both Macau and Monaco & Islands was strong. The headline result in Macau was boosted by surging iPhone sales and we saw strong growth in the bottom line. Monaco & Islands had a buoyant first half despite currency devaluation in the Maldives. Mobile Data has shown rapid growth in a number of our markets, a trend that we expect to continue in H2 and future years as the penetration of smart devices continues to increase, having risen to 19% of our subscriber base by the end of September.

"We have made an encouraging start in the Bahamas, since we acquired the Bahamas Telecommunications Company in April. The initial phase of the restructuring plan has been completed ahead of schedule and as a result we booked the majority of our expected restructuring costs in the first half. The business has now begun to adopt a more customer focused approach and in the second half we will be introducing new product and service offerings, including high speed mobile data services, the iPhone and a better value proposition for our customers.

"Elsewhere in the Caribbean we have seen signs of a stabilisation in a number of our principal markets, although Jamaica remains difficult. We are, however, encouraged by recent announcements by the Jamaican Government and its intention to create a level regulatory playing field providing Jamaicans with greater choice and value.

"Panama continues to perform strongly in the important mobile segment, but changes in the gross margin percentage have held the business to the same level of EBITDA as last year. We have recently launched a high speed mobile data network and are rolling out enhanced mobile data services prior to Christmas and, as last year, expect to deliver a stronger second half.

"We have also successfully signed five-year US$600 million credit facilities securing a large bulk of our near term funding needs on improved terms. This is part of our general liability management which remains focused on maintaining a prudent level of leverage over the medium term.

"Despite uncertainties about the world economic environment we are well placed as we enter the second half with each of our businesses expected to trade in the full-year ranges for EBITDA set out at the start of the year."

INTERIM MANAGEMENT REPORT

Analysis of Group results

Revenue increased by 24% to US$1,442 million including a first time contribution of US$177 million from the Bahamas business acquired in April 2011. We saw a strong performance in Macau where mobile service and handset sales drove a 50% rise in revenue. Across the Group, enterprise activity increased and non-voice mobile revenue grew as data penetration levels rose.

Group EBITDA increased by 4% to US$443 million following the strong performance in Macau, together with the addition of the Bahamas.

Total operating profit before exceptional items increased by 7% to US$274 million. There was a net exceptional charge of US$58 million primarily related to the voluntary separation programme (VSEP) in the Bahamas where we have completed the initial phase ahead of schedule and booked the majority of our expected restructuring costs in this period.

Profit for the period before exceptional items was up 9% to US$163 million and adjusted earnings per share for the period was 3.8 US cents. The Board has declared an interim dividend of 2.67 US cents per share which is unchanged from the prior year.

On a like-for-like basis, adjusting the prior period by removing Bermuda, a business we sold in March 2011, and excluding the Bahamas from the current year and at constant currency, revenue for the Group would have been 10% higher and EBITDA for the Group would have been 2% lower than last year.

The Group made strong strategic progress during the half. We are vigorously pursuing new areas of growth: mobile data, enterprise and social telecoms and carrier services to address the decline in high margin fixed services voice services and to provide future growth. We are also deploying triple-play services, with pay TV as a key component.

Mobile data services, facilitated by the increased penetration of smartphone devices, have accelerated across the business. Mobile data revenue rose by 94% and now accounts for 7% of Group revenue. Our Macau business has led this growth with 40% of its subscriber base on data plans driving a 52% growth in non-voice (data and SMS) services year-on-year. We expect this segment to continue to grow across the portfolio. We have made significant network upgrade investments in the Caribbean and Panama, where we will be launching more mobile data services in the second half. After its successful launch in Macau last year, we have agreements in place to offer the iPhone to customers across most of our key territories in the portfolio.

Enterprise and social telecoms services are also growing across the business, with each business unit posting strong rises in revenues. Across the Group, enterprise, data and other revenue rose by 20%. Panama has been a leader in providing social telecom projects to the Government, and we have begun to expand this expertise into other Central American markets. We are also seeing success with social telecoms projects in Monaco & Islands, and the Caribbean. Macau's enterprise offering to casinos continues to grow.

We remain committed to reshaping the Group, for example the integration and restructuring of our recently acquired business in The Bahamas. The restructuring is ahead of schedule.

Contacts

REVIEW OF CWC OPERATIONS

Income statement

Panama

·; Mobile revenue up 5%, strong growth in postpaid subscribers

·; Mobile non-voice revenue up 108% - mobile data services roll-out in H2

·; Solid growth in enterprise revenue with a strong pipeline

Revenue at US$308 million was 5% higher than the same period last year driven primarily by non-voice mobile growth and enterprise projects implemented during the period.

Mobile revenue was up 5% to US$156 million as the business maintained its market share above 50%. The high value postpaid subscriber segment continued to grow driven by an increasing demand for data services. Mobile ARPU is now 26% higher than it was a year ago although this is partially due to deactivation of low spending prepaid subscribers, whose numbers have fluctuated based on promotional activities in the market. Mobile non-voice revenue more than doubled year-on-year and was up 41% on the second half of last year as increased data penetration led to higher mobile ARPUs. We expect non-voice revenue to grow further as we roll-out our 4G/HSPA+ network nationwide in the second half of this year.

Broadband & TV revenue grew 7% to US$30 million as we continued to make progress with our Pay TV service. Subscribers increased to 45,000 and our network footprint now covers over 250,000 homes.

Fixed voice revenue declined by 5% to US$72 million largely due to a reduction in payphone traffic and lower international volumes.

Enterprise, data and other revenue grew by 19% to US$50 million. This is a segment where we are one of the leading players in the region and an area where we see good opportunities for expansion. Earlier this year we announced three new large contracts: a project with the Second Judicial District to modernise the IT systems of the criminal justice system; a contract to provide a national telecommunications network for the country's Ministry of Security; and a contract to supply and manage an emergency services call system for the national police force in El Salvador - our first contract outside Panama. Recently we were awarded a contract for the next three years to supply, install and support new systems enabling the Panamanian Government to share information electronically and reduce the need for paper.

Gross margin increased to US$202 million although as a percentage of revenue it declined by two percentage points to 66%. This was mainly due to the change in enterprise gross margin percentage which fluctuates depending on individual contracts.

Operating costs at US$75 million were 4% higher than last year mainly reflecting higher network costs incurred to facilitate the growth in data and other services. To provide a better customer experience and take advantage of being the sole full service provider we consolidated the operations of our fixed and mobile businesses in the first half. This restructuring programme reduced headcount by 169 leading to an exceptional charge of US$6 million in the first half. We expect the restructuring to yield an ongoing saving of almost US$3 million on an annual basis.

As a result, the business generated EBITDA of US$127 million which was the same as last year and EBITDA as a percentage of revenue was 41%. We expect EBITDA for the full year to be in the range of US$270 - 295 million which remains in line with our previously stated outlook.

Our proportionate ownership of Panama EBITDA for the six months ended 30 September 2011 was 49%.

Caribbean

·; Bahamas acquisition off to a solid start

·; Growth in postpaid subscriber base

·; 4G/HSPA+ launched in Cayman, further roll out across region in second half

CWC acquired a controlling stake in BTC on 6 April 2011, when the business became part of the Caribbean business unit. To aid prior year comparison the table above and the commentary below shows summary financial results for the Caribbean as previously reported and the contribution from the Bahamas.

Caribbean (excluding Bahamas)

Excluding the Bahamas, Caribbean revenue was in line with the first half of last year, gross margin increased by 1% and EBITDA declined by 17%.

Mobile revenue declined by 3% to US$143 million compared with last year. Mobile service revenues were broadly flat, however handset sales reduced due to lower subsidies. There was an improving mobile performance in Jamaica, where mobile service revenue increased driven by growth in inbound roaming with postpaid ARPU benefitting from tighter control around discounted voice minutes. In the rest of the Caribbean the increase in the postpaid subscriber base and improved data ARPUs were offset by falling prepaid voice revenue. Mobile data has seen strong growth, particularly in Barbados where non-voice revenue grew by 50% compared to prior year. During the period, we launched our first 4G/HSPA+ network in the Cayman Islands. We are making similar investments in the rest of the Caribbean as penetration of iPhone and other smartphone devices increases.

Broadband & TV revenue increased by 2% to US$53 million following a successful campaign where we upgraded a number of subscribers to higher value packages on our enhanced network. Excluding Jamaica, where our broadband subscriber base declined due to increased competition, the broadband subscriber base increased by 5% compared to last year. Barbados and the Cayman Islands stood out with year-on-year revenue growth of 11% and 9% respectively as the number of broadband subscribers grew strongly.

Voice substitution continued to affect fixed line revenue, which at US$133 million declined by 6%, although the rate of decline slowed compared with prior periods.

We saw strong growth in our enterprise, data and other revenues, up by 15% to US$70 million. During the period we announced a new contract to design and provide connectivity for an e-learning network, C@ribNET, which will connect colleges and universities across the Caribbean. Additionally we are starting to see carrier transactions coming through from the investment we made last year in the East West cable.

Gross margin was stable at US$300 million reflecting more support from the macro environment and a more focused promotional strategy in respect of handset subsidies.

Operating costs were higher, rising 12% on the prior period. Inflationary pressures drove an increase in staff costs, which coincided with higher operating costs resulting from investment in expanding the sales force, higher network support costs due to network expansion and an increased retail presence. Notwithstanding this we have made good progress in the period with our cost reduction programmes. We have engaged our employees and union partners to realign our compensation structure so that it is sustainable, market driven and provides greater emphasis around incentive driven pay, and commenced a programme of benefit restructuring and buy-outs. We have also worked to benchmark many of the operational and support areas and have commenced programmes to improve efficiency over the medium term.

Reflecting the higher level of operating costs, EBITDA fell to US$95 million, but we remain confident that EBITDA for the full year for the Caribbean excluding the Bahamas will be in the range of US$180 - 210 million which is in line with our previously stated outlook.

Bahamas

On 6 April 2011 we completed our purchase of a 51% stake in BTC in The Bahamas for a cash consideration of US$204 million. The company is the exclusive mobile operator in The Bahamas as well as a leading provider of fixed line and broadband services. Under the terms of the acquisition, the liberalisation process for the mobile sector will commence no sooner than three years after privatisation.

Our Bahamas business has delivered a satisfactory financial performance in the first half of the year and we have made excellent progress in restructuring the business. The voluntary redundancy programme which was open to all employees has closed with the uptake in line with our expectations; over 400 applications have been approved with 260 colleagues having left the business by 30 September 2011. These restructuring costs will be funded by BTC, which had US$79 million of cash balances as at 30 September 2011.

During the period we have invested to upgrade the network to deliver high speed mobile broadband, begun to refresh the retail and distribution network, enhanced our customer service facilities and launched new customer initiatives, such as the removal of inter-island surcharges. Many of the plans to prepare BTC to face mobile competition in the future have been laid and we will accelerate implementation during the second half of this financial year and into the next.

We expect EBITDA for the full year to be in the range of US$60 - 80 million which remains in line with our previously stated outlook.

Our proportionate ownership of EBITDA for the Caribbean (including Bahamas) for the six months ended 30 September 2011 was 78%.

Macau

·; EBITDA up 11% driven by strong mobile growth

·; Economic growth continues at an extraordinary rate; visitor numbers increasing year-on-year

·; Mobile data services growing rapidly - non-voice 29% of mobile service revenue

The Macau economy again achieved exceptional growth with real GDP growth of 23% in the first half of this calendar year. Gaming revenue rose 46% and visitor numbers were up 10% in the first eight months of this calendar year1.

Our business had an excellent start this year as revenue increased by 50% to US$258 million with double digit growth for mobile, broadband and enterprise compared to the same period last year.

Mobile revenue of US$151 million almost doubled compared to last year. Mobile equipment sales surged to US$100 million, driven by the popularity of the iPhone and other smartphones in the region. Mobile services revenue grew strongly, up 12% to US$51 million, due to a combination of growth in subscriber numbers and ARPUs up 9% on last year driven by higher non-voice and roaming revenues. Mobile non-voice revenue now represents 29% of subscriber service revenue as smartphones and mobile broadband usage increased.

Broadband subscribers grew by 4% along with increasing ARPU as subscribers demanded greater bandwidth. Broadband revenue increased by 12% to US$28 million.

Fixed voice revenue of US$38 million decreased compared to the same period last year as customer substitution reduced both subscribers and ARPU by 1% and 5% respectively. It is the intention of the regulator to introduce fixed line competition but as yet no new licences have been awarded.

Enterprise, data and other revenue of US$41 million improved by 37% as the business won managed service contracts with the Macau Government and casinos including the Galaxy and Venetian.

Gross margin of US$114 million was up 12% compared with last year reflecting strong underlying performance in the mobile and enterprise segments.

Operating costs of US$30 million were 15% higher than the same period last year. The higher revenue drove increased network and administration costs though this was limited by strong controls. At 16% of revenue, excluding iPhone equipment sales which commenced in November 2010, operating costs were one percentage point higher than the same period last year.

On the back of the strong mobile performance, EBITDA was 11% higher in the first half at US$84 million. Adjusting for iPhone equipment sales the underlying EBITDA margin was 42%.

We expect EBITDA for the full year to be in the range of US$150 - 160 million which remains in line with our previously stated outlook.

Our proportionate ownership of Macau EBITDA for the six months ended 30 September 2011 was 51%.

Monaco & Islands (M&I)

·; Revenue up 8% and EBITDA up 3% on like-for-like basis

·; Monaco and Maldives performed well on an underlying basis

·; Data begins to drive mobile revenue growth

Revenue at US$300 million was 2% higher than the same period last year. Our Monaco business saw strong revenue growth, while in the Maldives a devaluation of the local currency, the Rufiyaa, saw revenue reported in US dollars fall despite increasing in local currency. We also disposed of our Bermudan business in March 2011. Excluding Bermuda and adjusting for currency, revenue increased by 8% compared to the prior year.

Monaco performed very well in the first half of the year with revenue up strongly, mainly driven by strength in the mobile and enterprise segments. Rising data usage saw mobile revenue post a double digit rise, as penetration of smartphones and tablets grew rapidly. Increased traffic volumes and higher pricing for our international operations boosted enterprise revenue. Growth in subscriber numbers and ARPU were reflected in the 16% increase in broadband & TV revenue. Monaco benefitted from a favourable euro to US dollar exchange rate compared to the same period last year.

In local currency, the Maldives had a good underlying performance, with revenue up 7% on last year as roaming activity drove mobile revenue 10% higher and telemedicine services led to an increase in enterprise revenue. During the period the Government of the Maldives introduced a limited free float of the Rufiyaa which prompted a 20% devaluation. Consequently US dollar revenue of US$67 million was 10% lower than last year.

In Guernsey competition in the mobile sector remains intense but we still managed to grow our active subscriber base by 4% and increased our market share. Broadband subscribers increased year on year by 9% as did ARPU, which rose 11%.

Gross margin at US$205 million was in line with the same period last year. As a percentage of revenue this reduced by one percentage point to 68% largely driven by the disposal of our Bermuda business and its high margin fixed line revenue.

Operating costs were US$108 million, up 6% on the same period last year. Afinis, our African enterprise services business made good early progress but incurred additional operating costs after its re-launch in February 2011. In Guernsey we increased marketing spend in order to retain our leading mobile market position and grow other lines of the business and an adverse sterling to US dollar exchange rate also resulted in higher operating costs.

EBITDA at US$97 million was 6% lower than the same period last year, largely reflecting the disposal of Bermuda, which was responsible for US$6 million of this reduction with the balance relating to the devaluation of the Rufiyaa. On a like-for-like basis, excluding Bermuda and at constant currency, EBITDA increased by US$3 million, or 3%, compared to last year.

We expect EBITDA for the full year to be in the range of US$170 - 190 million which remains in line with our previously stated outlook.

Operations in the Maldives, Monaco and Guernsey represented approximately 84% of M&I revenue and approximately 91% of EBITDA in H1.

Our proportionate ownership of Monaco & Islands EBITDA for the six months to 30 September 2011 was 64%.

Other includes management, royalty and branding fees, the costs of the corporate centre, net UK defined benefit pension credit or charge and intercompany eliminations. EBITDA was US$3 million, in line with last year.

Our share of profit after tax from joint ventures was US$13 million, US$8 million lower than the same period last year mainly as the prior year included the release of US$11 million in allowances which were held against a former joint venture subsequently liquidated.

Our share of TSTT profits declined by US$2 million as staff related costs increased. Roshan continues to maintain its market leadership with mobile subscriber growth of 35% driving revenue growth and the increase in our share of profits by US$4 million. Fintel, in Fiji, remained in line with last year.

On 12 October 2011, CWC sold its 50% interest in Telecom Vanuatu to Mauritius Telecom Limited. As at 31 March 2011, Telecom Vanuatu had gross assets of approximately US$31 million, with our proportionate share representing US$16 million.

Capital expenditure was US$160 million, 25% higher than the same period last year, though representing 11% of revenue, which was in line with last year. Our principal customer facing investments were in 4G/HSPA+ mobile data networks supporting smartphone sales especially in Panama, Barbados and Cayman, growth of fixed broadband, and selective Pay TV investments. We have also invested in transmission capacity and cable systems to support both retail and carrier sales. We continue to advance our billing and customer relationship management systems. Included this year, for the first time, is our investment in the Bahamas; here our focus is to improve the speed and the capacity of our fixed and mobile networks, providing an improved service to our customers and preparing for future market competition. In the Maldives we have continued our multi-year investment in a domestic cable network that will allow us to provide data services to the population and to the tourist resorts. We expect capital expenditure for the full year to be approximately US$400 million, consistent with our previously stated outlook.

Depreciation and amortisation at US$175 million was US$17 million higher than H1 2010/11 primarily due to the inclusion of the Bahamas.

Other Group items

Net other operating expense

The US$7 million net other operating expense incurred in the first half of the year comprised US$7 million stamp duty in connection with the purchase of a 51% stake in BTC in The Bahamas and US$3 million hurricane restoration costs also in the Bahamas, partially offset by a gain on the retranslation of sterling based pension funds. In the prior period, US$11 million loss was recorded predominantly on the retranslation of the pension funds.

Net exceptional items moved from an income of $6 million to a charge of US$58 million in the first half of the year with the cost in the current year predominantly relating to the redundancy and restructuring programmes in the Bahamas and Panama. Our expectations for restructuring and integration costs related to the Bahamas acquisition remain unchanged. The prior period income reflected the receipt of US$17 million after successfully defending claims brought by a Caribbean competitor, partially offset by additional restructuring charges and professional fees.

Net finance expense

The US$73 million net finance expense for the Group consists of finance income of US$5 million (US$22 million in H1 2010/11) and finance expense of US$78 million (US$72 million in H1 2010/11). The movements in finance income and expense compared to the prior period relate primarily to foreign exchange gains in the prior period, and increased borrowings largely due to the acquisition of BTC in The Bahamas.

Income tax expense

The income tax charge of US$37 million (US$54 million for H1 2010/11) is in respect of overseas taxes. This charge represents an effective tax rate of 26% which is consistent with our outlook range of 25% to 29%.

Group cash flow

Cable & Wireless Communications generated operating cash flow before exceptional items of US$283 million in the six months ended 30 September 2011, slightly lower than the same period last year as the Group made the decision to invest heavily in its mobile data networks. As a result US$160 million was invested in capital expenditure compared to $128 million in the same period last year. The outflow from movements in working capital and provisions largely reflected an investment in inventory, specifically related to smartphone purchases as well as laptop and mobile TV handsets for promotions in the Caribbean.

Investment income of US$6 million included US$4 million of interest received on cash balances with the balance primarily relating to dividends received from joint ventures.

Fixed charges

As in the prior year our fixed charges are more weighted to the first half of the year. We paid US$64 million relating to income tax in the first half of 2011/12, US$11 million higher than last year due to recent tax legislation in Panama which changed the timing of tax payments to a higher first half weighting. Interest of US$66 million was paid on our external borrowings as the level of borrowings increased compared to the same period last year. We paid dividends and loans to non-controlling interests of US$120 million in the period. This was US$22 million higher than last year as we addressed existing cash balances in the Maldives and achieved higher distributions from Macau, Panama and Monaco.

Dividends to our shareholders were higher than the prior year as a scrip dividend scheme was not offered in relation to the final dividend for FY2010/11.

One-off items and exceptionals

The net cash outflow included US$37 million for exceptional items which predominantly related to restructuring costs in the Bahamas, where our restructuring programme has progressed faster than anticipated, and Panama. In February 2011, we announced a US$100 million share buyback programme of which US$30 million was returned to shareholders in the last financial year. The final US$70 million was returned to shareholders earlier this year under this programme purchasing 94,726,873 shares to be held in treasury. In April, the Group made a cash payment of US$6 million for the previous LTIP. We incurred acquisition costs in the first half of this year primarily relating to the purchase of BTC in The Bahamas in April 2011 for cash consideration of US$204 million partially offset by the consolidation of its US$59 million cash balances and we also made an investment in the subsea cable consortium in the Seychelles.

Group cash and debt

Net debt reconciliation

As at 30 September 2011, the Group had three-year bank facilities of US$600 million (comprising a US$500 million revolving credit facility and a US$100 million term loan) with margins between 3.25% and 4% over LIBOR and with a maturity date of March 2013. As at 30 September 2011, US$330 million of the revolving credit facility was drawn and the term loan facility was undrawn.

Refinancing of bank facilities

During October 2011, the Group entered into new five-year borrowing arrangements for US$600 million of revolving credit facilities. The facilities replace the Group's US$500 million revolving credit facility and US$100 million term loan which were due to expire in March 2013. The new facilities are with a syndicate of nine leading international banks.

The new facilities have a maturity date of October 2016 and a margin of 2.50% over LIBOR. Consistent with the prior facilities, the new facilities are secured on share pledges over the Group's assets.

Pensions

As at 30 September 2011, the defined benefit section of the Cable & Wireless Superannuation Fund (CWSF) had an IAS 19 deficit of £78 million, compared to a deficit of £51 million as at 31 March 2011.

During the prior year, the company reached agreement with the trustees on the triennial valuation as at 31 March 2010. In addition to cash contributions made in March 2011, further payments have been agreed from 2014 to 2016 in order to eliminate the deficit. These payments are subject to the outcome of the next actuarial valuation as at March 2013. This future deficit funding constitutes a minimum funding agreement and, in accordance with accounting standards, we are required to account for this within our IAS19 deficit. The increase in the IAS19 deficit in the period is mainly due to a fall in index-linked gilt yields and a decrease in the value of equity investments resulting in an increase to this minimum funding commitment. The IAS19 deficit recorded at 30 September 2011 represents the present value of the maximum amount committed under the minimum funding agreement.

The AA corporate bond rate used in the IAS 19 valuation was 5.4% compared with 5.6% at 31 March 2011.

The fund assets at 30 September 2011 were approximately invested 69% in the bulk annuity policy, 18% in equities, and 13% in bonds, property, swaps and cash.

There are other unfunded pension liabilities in the UK of £24 million (£23 million at 31 March 2011). The Group holds investments in gilts of £22m to partially back the UK unfunded pension liabilities. Other schemes in Cable & Wireless Communications have a net IAS 19 surplus of US$24 million (US$29 million surplus at 31 March 2011).

Dividend

We are declaring an interim dividend of 2.67 US cents per share.

The interim dividend of 2.67 US cents per share will be paid on 12 January 2012 to ordinary shareholders on the register at the close of business on 11 November 2011. Subject to financial and trading performance in the second half of 2011/12, we expect to recommend a final dividend of 5.33 US cents per share, resulting in a full year dividend of 8.00 US cents per share.

A currency option and the dividend reinvestment plan will be offered in respect of the interim dividend. The default currency for payment is GBP sterling. Shareholders wishing to receive their dividend in US dollars or wishing to participate in the dividend reinvestment plan should make an election using CREST Input Message or return a completed Currency Mandate Form or Dividend Reinvestment Plan Mandate Form to: Equiniti Ltd, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA by 12 December 2011. Copies of the mandate forms are available from Equiniti Ltd. UK callers: 0871 384 2104; overseas callers: +44 (0)121 415 7052 or from our website www.cwc.com.

The sterling dividend payment amount per share will be announced on 16 December 2011, and will be based on the prevailing GBP sterling to US dollar exchange rate at 2pm GMT on that date.

Appendices Appendices

Condensed consolidated interim income statement

Condensed consolidated interim statement of comprehensive income

Condensed consolidated interim statement of financial position

Condensed consolidated interim statement of changes in equity

Condensed consolidated interim statement of cash flows

Reconciliation of net profit to net cash flow from operating activities

Notes to the condensed consolidated interim financial statements

Risks to our future success

Independent review report by KPMG Audit Plc to Cable & Wireless Communications Plc

Responsibility statement

Important disclaimer

Operating performance information

H1 2010/11 CWC constant currency results detail

KPI detail

Exchange rates

EBITDA by currency

Condensed consolidated interim income statement

The notes on pages 22 to 28 are an integral part of these financial statements

Further detail on exceptional items is set out in note 6

Condensed consolidated interim statement of comprehensive income

The notes on pages 22 to 28 are an integral part of these financial statements

Condensed consolidated interim statement of financial position

The notes on pages 22 to 28 are an integral part of these financial statements

Condensed consolidated interim statement of changes in equity