Published: Monday August 25, 2008
CABLE & WIRELESS (BARBADOS) recorded an after tax profit of $91 million for the 2007-08 period.
A Press release stated that the local telecommunications company had another strong performance for the financial year ending last March 30, showing an after tax income of $91.7 million, an increase of 14 per cent over last year.
Don Austin, President of Cable & Wireless (Barbados) reported that the significant growth of the broadband customer base, new product offerings and creative marketing promotions along with prudent cost management all contributed to the year-end results, counteracting declining revenues from traditional services.
Ola Ogun, chief financial officer of Cable & Wireless, explained that there was eight per cent and 43 per cent growth respectively in mobile and broadband customer base. In addition, the company injected over $50 million in capital and, as a result, there were improvements in the Mobile GSM network, prepaid platforms and Metro-Ethernet network, which facilitated improved traffic management and service to customers.
Austin said that "the roll out of the Multi-Service Access Nodes (MSAN) project allowed for additional capacity to be provided for fixed line and broadband services to customers in several large catchments areas". The total investment for the MSAN project was more than $10 million and it has benefited over 18 000 customers to date.
"During the year, there was also a focus on deploying systems to drive first class customer service.
Call Quality training was conducted for members of the Contact Centre and the company progressed the development of an e-Business strategy to allow customers to purchase goods and services online.
The company also spent $1.2 million on the training for employees during the financial year.
With respect to the declining revenues in traditional lines of business, Ogun reported that there was a downward trend of 21 per cent and 11 per cent respectively in international outgoing calls and international lease circuits. Cost of sales rose by five per cent due to increased leased rentals network plant and equipment and operating expenditure also rose by nine per cent, primarily as a result of the negotiated increase in staff wages.
Looking to the new financial year, Austin noted that the company was bracing itself for increased competition in the market and the impact of the global recession.
However, he confirmed that customer service programmes would continue to be high priority as the company entered the period of transformation towards One Caribbean.
Source: Nation Newspapers