British telecoms group Cable & Wireless reported first-half core profits below the average market forecast today and announced it was abandoning the balance of its share buyback programme.
'We have decided to discontinue the balance of the £250m share repurchase programme. This will also allow us to retain a robust cash position and have the resources to take advantage of the high-return opportunities that exist,' the firm said in a statement.
However, the UK's second-biggest corporate telecoms provider announced an 18% rise in its dividend to 4.5 pence, which it said reflected 'the increased visibility of the future prospects for the group'.
Cable & Wireless is in the midst of yet another radical restructuring in the UK, cutting jobs and reducing its customer base as it takes the knife to costs in a tough market.
In February this year C&W, which has substantial telecoms operations in the Caribbean as well as other countries, said it would cut 3,000 UK jobs over five years and slash its corporate customer base to around 3,000 from 30,000.
Before that, it announced a restructuring of the group into two separate business units, one for its UK businesses and the other containing its international businesses.
C&W posted earnings before interest tax, depreciation and amortisation (EBITDA) and exceptional items, of £411m for the year to March 31, on a 9.5% rise in revenue to £3.23 billion.
