Cable & Wireless Reports Preliminary Q3 2017 Results Return to RGU Growth with 20,000 Adds; Rebased Revenue Growth1 +1% 165,000 New Build / Upgrades YTD & Hurricane Recovery Underway

anguillian
By anguillian November 13, 2017 10:07 Updated

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MIAMI, FL –November 2, 2017 –Cable & Wireless Communications Limited (“C&W”) is a leading telecommunications operator in its consumer markets, which are predominantly located in the Caribbean and Latin America, providing entertainment, information and communication services to 3.5 million mobile, 0.4 million television, 0.6 million internet and 0.6 million fixed-line telephony subscribers2. In addition, C&W delivers B2B services and provides wholesale services over its sub-sea and terrestrial networks that connect over 40 markets across the region.

Liberty Global’s Acquisition of C&W
On May 16, 2016, a subsidiary of Liberty Global acquired C&W (the “Liberty Global Transaction”). Revenue and subscriber statistics have been presented herein using Liberty Global’s definitions for all periods presented unless otherwise noted. Further adjustments to these metrics are possible as the integration process continues. Significant policy adjustments have been considered in our calculation of rebased growth rates for revenue. For additional information on Liberty Global’s definition of rebased growth rates, see footnote 5. In addition, effective for the 2016 fiscal year, C&W changed its fiscal year end from March 31 to December 31 to conform with Liberty Global.

Operating highlights:
• RGU3 additions of 20,000 in Q3 took YTD additions to 15,000
? Broadband4 RGU additions of 10,000 in Q3, compared to a decline in Q2
? Network upgrades and improved product offering led to gains of 4,000 and 6,000 in Panama and Jamaica, respectively
? 23,000 next-generation WiFi “Connect Boxes” across our broadband subscriber base at the end of Q3 2017; significantly enhancing the quality of the in-home broadband experience
? Video decline of 4,000 RGUs in Q3, in-line with Q2 losses
? New bundles were introduced in Trinidad; however, the underlying headwinds from over-the-top services continued, resulting in video attrition of 3,000. In Panama, our cable video gains were offset by DTH losses
? Fixed voice additions of 14,000 in Q3, compared to a 9,000 decline in Q2
? Bundles driving demand in Jamaica, Trinidad and Panama
• Mobile subscribers5 declined by 43,000 in Q3

? Subscribers in Panama fell by 22,000 as we repositioned our offers to focus on higher ARPU customers. New competition in the Bahamas continued to impact our business and drove a 19,000 reduction in mobile subscribers
• New build and upgrade initiatives delivered approximately 85,000 premises in Q3, bringing the YTD total to approximately 165,000 new or upgraded homes

Update on Impacts of Hurricanes Irma and Maria:
• In September 2017, Hurricanes Irma and Maria impacted a number of our markets in the Caribbean
• Portions of C&W’s mobile and fixed networks were significantly damaged as a result of the hurricanes, most notably in the British Virgin Islands and Dominica. In addition, impacted markets are dealing with extensive damage to homes, businesses and essential infrastructure. In these collective areas, our mobile services are largely restored, however significant portions of the fixed networks are not currently operational
• We are committed to helping people across the Caribbean region recover and rebuild. To that end we launched the Cable & Wireless Charitable Foundation which will distribute funds to assist victims of the hurricanes. We have also provided credits to mobile customers in impacted C&W markets
• We currently estimate that more than $50 million of property and equipment additions would be required to restore 100% of the damaged networks in the impacted C&W markets, and that the effects of the hurricanes will negatively impact C&W’s revenue and Adjusted Segment EBITDA by between $15 million and $25 million during Q4 2017. Although these negative impacts will decline as the networks are restored and customers are reconnected, we expect that the adverse impacts of the hurricanes on CWC’s revenue and Adjusted Segment EBITDA may continue throughout 2018 and beyond. These estimates are preliminary and are subject to change
• We are part of an integrated group property and business interruption insurance program covering all impacted markets up to a limit of $75 million per occurrence, which is generally subject to approximately $15 million per occurrence of self-insurance
? This policy is subject to the normal terms and conditions applicable to this type of insurance. We expect that the insurance recovery will only cover a portion of the incurred losses of each of our impacted businesses
• We have not recognized any potential insurance proceeds related to the hurricane losses, and we do not currently expect to receive any significant reimbursements in 2017

– Press Release

anguillian
By anguillian November 13, 2017 10:07 Updated

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