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C&W Warns of Sales Drop, Merger Delay.
2005-10-12, HostMan.biz Cable & Wireless (cw.com) said last Friday that its first half sales would drop six percent and warned that planned cost cutting initiatives would be put on hold pending the Office of Fair Trading's approval of its August acquisition of Energis. The company cited the shift to IP services and downward pressure on legacy revenue as key factors behind its struggles. It also noted a change in its overall revenue mix from retail to carrier service, with retail margins weakening. Cable & Wireless, despite the rather gloomy results, put a positive spin on its outlook, saying it expected a "satisfactory outcome for the full year." Energis was acquired in August for $1.08 billion. It was C&W's first move in Web hosting since selling of its US hosting arm to SAVVIS early in 2004. |
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