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Press Release -- May 26th, 2011
Source: Cable & Wireless Worldwide
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Cable & Wireless Worldwide plc results for the year ended 31 March 2011

£m 31 March 2011 31 March 2010 Change
Revenue 2,257 2,265 (0.4)%
EBITDA 1 442 431 2.6%
Profit before tax, before exceptional items 143 116 23%
Earnings per share 7.9p 0.0p nm
Trading cash flow 2 116 71 63%
Free cash flow 3 61 (1) nm
Dividend per share 4 4.5p - nm

This table should be read in conjunction with the explanatory notes below.

Financial highlights

  • EBITDA up 2.6% to £442 million
  • Profit before tax, before exceptional items, up 23% at £143 million
  • Delivered free cash flow of £61 million
  • Hosting and Applications margin up 10%
  • Final dividend of 3.0 pence per share recommended; full year dividend 4.5 pence
  • Board intends to hold the annual dividend level at 4.5 pence until covered by free cash flow

Operational progress

  • Extended relationship with Boots UK in an agreement to supply and manage a range of data and telephony services
  • Won a three year contract with Babcock to consolidate their network estate and connect 250 UK and international sites
  • Agreed framework contract to provide a highly resilient global network for the UK Government
  • Launched ‘Flexible Computing’, our innovative cloud proposition

Jim Marsh, Chief Executive Officer, said:

"This year we passed the important milestone of turning cash positive for the first time with free cash flow generation of £61 million. EBITDA was up 2.6% to £442 million and profit before tax, before exceptional items, was up 23% to £143 million.

Looking forward into 2011/12 we expect trading cash flow growth to continue despite EBITDA remaining at the same level as 2010/11. The movement to cloud, along with the ongoing convergence between mobile and fixed line communications and the rapid growth in global data traffic create good opportunities for our business."

Explanatory notes

  1. EBITDA is defined as earnings before interest, tax, depreciation and amortisation, LTIP credit/charge, net other operating income/expense, exceptional items and gains/losses on disposal of non-current assets and is reconciled to GAAP measures on page 24.
  2. Trading cash flow is defined as EBITDA, less cash exceptionals, less cash capex, adjusted for the movement in working capital and other items.
  3. Free cash flow represents net cash flow before repayment of and proceeds from borrowings other than finance leases, dividends paid and proceeds from share issues.
  4. Dividend per share represents proposed final dividend and paid interim dividend.

nm – not measurable.

All current financial results listed are for the year ended 31 March 2011. All references to 'the prior period', 'the prior year', '2010', 'last year' and '2009/10' mean the year ended 31 March 2010 unless otherwise specified.

Contacts:

Investor Relations:

Kieran McKinney Head of Investor Relations, Cable&Wireless Worldwide +44(0)208 243 4700

Press Relations:

James Hill Head of Financial PR, Cable&Wireless Worldwide +44 (0)7822 807448

James Melville-Ross Financial Dynamics, Financial PR +44 (0)7909 684467

Further information about Cable&Wireless Worldwide is available at www.cw.com

Cable&Wireless Worldwide will hold its 2010/11 full year results presentation for analysts and institutional investors at 9.00am (UKT) on Tuesday 24 May 2011.

A live audio webcast of the presentation and the presentation slides will be available at www.cw.com

A live audio broadcast of the presentation will also be available by dialling in using the following number:

UK & International: +44 (0)20 7138 0837

To access this audio conference, you will need to quote the following confirmation code – 9246451.

Replay: +44 (0)20 7111 1244 code confirmation: 9246451#

A recorded video webcast of the presentation will be accessible at www.cw.com

For any further information or queries, please email ir@cw.com

Financial Calendar

Ex-dividend date for 2010/11 final dividend: 8 June 2011

Record date for 2010/11 final dividend: 10 June 2011

Payment date for 2010/11 final dividend: 11 August 2011

NOTES TO EDITORS

Cable&Wireless Worldwide (LSE: CW.) is a global telecoms company providing a wide range of highquality managed voice, data, hosting and IP-based services and applications to large multinational companies, governments, carrier customers and resellers across the UK, Asia Pacific, India, Middle East & Africa, Continental Europe and North America. Established in the 1860s, Cable&Wireless Worldwide helps more than 6,000 organisations deliver their goals. The Group’s vision is to be the first choice for mission critical communications.

Reaching 20,500km in length, Cable&Wireless Worldwide owns the UK’s largest fibre network dedicated to business users of telecoms, and provides ubiquitous nationwide access through a combination of fibre, digital, microwave, radio and leased circuits. The network has presence in over 400 towns and cities in the UK, with 864 unbundled exchanges covering 56% of the population.

Internationally, Cable&Wireless Worldwide’s global next-generation network (NGN) stretches to more than 425,000km, including interests in 60 global cable systems, enabling connectivity to more than 150 countries. The Group’s IP-based Multi-Service Platform operates at the core of our NGN, offering a single environment on which voice and data applications can be converged to drive business efficiencies. Cable&Wireless Worldwide’s network is uniquely designed with inbuilt resilience.

With more than 6,000 colleagues globally, Cable&Wireless Worldwide is committed to delivering exceptional customer service and developing long term partnerships with its customers.

To find out more, visit www.cw.com

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