Cable & Wireless Communications Business Update; Cost Efficiencies and Growth Achieved.LONDON--(BUSINESS WIRE)--Sept. 15, 1997-- Highlights -- Successful integration in only 4 months -- Range of new products launched -- Over 100 million pounds in synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. savings in 1997/98 Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma operating statistics and revenues for three months ended June June: see month. 30, 1997 -- Total revenue increased 13% to 551 million pounds (Q1 96/7 - 488 million) -- Significant growth in usage of telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. services -- Consumer telephony - penetration The successful unauthorized breach of a security perimeter. See penetration test. increased to 22.6% (Q1 96/7 - 20.1%) - direct lines increased by 45% to 772,209 (Q1 96/7 - 533,241) -- Cable television - penetration increased to 19.1% (Q1 96/7 - 18.1%) - customers increased by 36% to 652,903 (Q1 96/7 479,242) Graham Wallace Wal·lace , Alfred Russel 1823-1913. British naturalist who developed a concept of evolution that paralleled the work of Charles Darwin. , chief executive, said: "We have made significant progress. In merging four companies we have created the UK's largest company delivering integrated communications services. This has been achieved whilst growing both revenues and the customer base. "We will achieve over 100 million pounds in synergy savings this financial year compared with the standalone stand·a·lone adj. Self-contained and usually independently operating: a standalone computer terminal. plans of the separate companies. The management team, which is 40% smaller than in the original companies, is now in place. We will continue to rationalise Verb 1. rationalise - structure and run according to rational or scientific principles in order to achieve desired results; "We rationalized the factory's production and raised profits" rationalize the business, and already anticipate on-going Adj. 1. on-going - currently happening; "an ongoing economic crisis" ongoing current - occurring in or belonging to the present time; "current events"; "the current topic"; "current negotiations"; "current psychoanalytic theories"; "the ship's current position" annual cost savings in excess of that 100 million pounds. "The one-off (1) One at a time. CD-ROM recorders (CD-R drives) are commonly called one-off machines because they write one CD-ROM at a time. (2) Only once. Software that is written to solve a specific problem only one time is sometimes called a one-off. costs of reorganisation Noun 1. reorganisation - the imposition of a new organization; organizing differently (often involving extensive and drastic changes); "a committee was appointed to oversee the reorganization of the curriculum"; "top officials were forced out in the cabinet are expected to total 200 million pounds, about half of which is the cost of transforming our systems and operations in order to deliver excellent customer service. "We are restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). our sales channels and investing in customer support. The 50 million pound advertising campaign being launched today will reach every consumer in the country. Our digital plans are well-developed well-developed adj [arm, muscle etc] → bien desarrollado; [sense] → agudo, fino well-developed adj [girl and we are in discussion with a wide range of content providers to make sure we give our customers what they really value. "Cable & Wireless Communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. is ideally placed to exploit the converging con·verge v. con·verged, con·verg·ing, con·verg·es v.intr. 1. a. To tend toward or approach an intersecting point: lines that converge. b. telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and television markets. The early take-up in the consumer market of our new combined telephony and television packages demonstrates the demand for integrated communications services." Pro Forma Operating Statistics and Revenues for the Three Months Ended June 30, 1997 Cable & Wireless Communications today announced pro forma unaudited operating statistics and revenues for the three months ended June 30, 1997. Summary of revenue Total revenue increased by 13% to 551 million for the three month period to June 1997 compared with 488 million pounds for the same period in 1996. A competitive approach to pricing contributed to minutes of use increasing 30% to 6.1 billion with some impact on margins. Consumer telephony Consumer telephony lines increased by 45% to 772,209 with penetration rising to 22.6%. Churn churn: see butter. fell to 18.9%. Cable television Total customers increased by 36% to 652,903 with penetration rising to 19.1%. Churn fell to 28.1%. -0-
Cable & Wireless Communications
Pro Forma Revenues and Operating Statistics (Unaudited)
million pounds 3 months to 3 months to 3 months to
June 1996 Sept 1996 Dec. 1996
Telecommunications 457 460 489
Cable television 31 33 38
Total revenue 488 493 527
Operating Statistics
(Unaudited)
Three months ended
June 30, 1997
Homes passed (000s) 2,877 3,029 3,189
Homes released to
operations (000s) 2,647 2,787 2,934
Penetration % -
Consumer telephony 20.1% 20.8% 21.7%
Cable television 18.1% 18.5% 19.5%
Churn %
Consumer telephony 19.5% 21.0% 19.5%
Cable television 29.4% 30.8% 29.3%
Consumer
Telephony lines 533,241 578,365 635,807
Cable television
customers 479,242 515,417 572,982
Average monthly revenue
per consumer telephony
line (pounds) 22.03 20.24 18.42
Average monthly revenue
per cable TV customer
(pounds) 21.98 22.21 22.93
Total minutes of telephone
usage (million) 4,731 4,970 5,334
3 months to 3 months to
March 1997 June 1997
million pounds
Telecommunications 487 508
Cable television 41 43
Total revenue 528 551
Operating Statistics
(Unaudited)
Three months ended
June 30, 1997
Homes passed (000s) 3,438 3,630
Homes released to
operations (000s) 3,239 3,418
Penetration % -
Consumer telephony 21.6% 22.6%
Cable television 19.1% 19.1%
Churn %
Consumer telephony 19.2% 18.9%
Cable television 28.4% 28.1%
Consumer
Telephony lines 698,385 772,209
Cable television
customers 618,638 652,903
Average monthly revenue
per consumer telephony
line (pounds) 21.17 21.63
Average monthly revenue
per cable TV customer
(pounds) 22.24 22.43
Total minutes of telephone
usage (million) 5,792 6,147
Notes:
Pro forma numbers have been derived by combining the results of the
component companies, Bell Cablemedia, Mercury, NYNEX CableComms and
Videotron, as if Cable & Wireless Communications had been in
existence since April 1, 1996.
Homes Passed - A home is "Passed" when activated plant is available
at the individual home curtilage (boundary). Homes in this
definition may require further action to determine whether
construction and installation is economically feasible.
Homes released to operations - A home is "Released to Operations"
when no additional works are required by the construction
department to ensure the home is serviceable.
Penetration -- The measurement of the take-up of telephony or cable
television services. Penetration rate for telephony or cable
television services is (i) the number of lines or television
customers connected on a particular date, divided by (ii) the total
number of homes released to operations on that date, expressed as a
percentage.
Churn - The discontinuance of telephony or cable television services
to a customer either voluntarily or involuntarily, commonly measured
as a rate from period to period. Cable and Wireless Communications
calculates 12 month rolling churn rate by dividing (i) the number of
its lines or customers that have been disconnected during the previous
twelve months by, (ii) the average number of lines or customers
during that period.
Average Monthly Revenue Per Telephony Line/Per Customer - Excludes
installation revenues and VAT and represents (i) the total consumer
telephony revenue or cable television revenue for the given period
divided by the number of months in such period, divided by (ii) the
average number of lines/customers in such period.
-0-
Pro Forma Income Statement for the Year Ended March 31, 1997
(Unaudited)
Year ended
March 31, 1997
(million pounds)
Revenue (a) 2,036
Outpayments and other cost of sales(b) (848)
Operating expenses (609)
EBITDA 579
Depreciation and amortization (397)
Operating profit 182
Profits less losses on sale and
termination of operations 15
Losses on disposal of fixed assets (7)
Net interest payable (110)
Profit on ordinary activities before
taxation 80
Taxation -
Profit on ordinary activities after
taxation 80
Notes
(a) Excludes intercompany revenue of 31 million pounds i.e. revenue
received by Mercury from the cable companies.
(b) Excludes 80 million pounds of contribution arising from
settlement of interconnect rates between Mercury and BT relating to
prior periods.
Exceptional charges
To be included in the accounts for the period to Sept. 30, 1997
million pounds
Staff related costs 45
Branding & launch costs 47
IT systems writedowns 55
Property & other writedowns 53
200
-0-
Pro Forma Balance Sheet as at March 31, 1997
(Unaudited)
million pounds
Fixed assets
Tangible assets 4,089
Investments 10
4,099
Current assets
Stocks 11
Debtors - due within one year 448
- due after more than one year 6
Cash at bank and in hand 175
640
Creditors
Amounts falling due within one year (1,329)
Net current liabilities (689)
Total assets less current liabilities 3,410
Creditors
Amounts falling due after more than
one year (1,455)
Provisions for liabilities and charges (260)
Net assets and shareholders' equity 1,695
Notes:
1. The balance sheet incorporates an adjustment to reduce the net
assets of the acquired cable companies to fair value as follows:
million pounds
Debt refinancing 279
Asset writedowns 185
IT systems and other writedowns 40
504
2. Creditors, amounts falling due within one year and amounts falling
due after more than one year, include gross debt of 1,780 million
pounds. Net debt is 1,605 million pounds, after deducting the
balance of cash at bank and in hand.
Subsequent to the year end short term debt has been refinanced by the
raising of a 2.9 billion bank facility.
-0-
Notes to Editors
Interim results for the period ending Sept. 30, 1997 will be issued
on Nov. 10, 1997.
Cable & Wireless Communications is the largest provider of integrated
telecommunications and television entertainment services in the
United Kingdom. The company serves customers nationally with a broad
range of facilities-based network services including local, national
and international voice and data services, and in certain regions,
multichannel television and Internet services and, through resale,
mobile telecommunications services. Cable & Wireless Communications
is one of the largest carriers of wholesale telecommunications
traffic in the United Kingdom and the thirteenth largest carrier of
international traffic in the world.
The following cautionary statement is included for safe harbour
purposes in connection with the Private Securities Litigation Reform
Act of 1995 legislation introduced in the United States of America.
Statements made in this press release that refer to Cable & Wireless
Communications' or management's "beliefs" or "expectations" for the
future, or "anticipated" results, or similar expressions, are forward
looking statements. It is important to note that such forward
looking statements involve various risks and uncertainties which
could lead to actual results differing materially from those
projected in such statements. Additional information concerning
factors that could cause actual results to differ is contained from
time to time in Cable & Wireless Communications' SEC filings
including, but not limited to, its prospectus dated March 21, 1997
included in the Registration Statement filed on Form F-4. Copies of
these filings may be obtained by contacting Cable & Wireless
Communications or the SEC.
CONTACT: Cable & Wireless Communications Nicholas Nicholas, Russian grand duke Nicholas (Nikolai Nikolayevich) (nyĭkəlī` nyĭkəlī`əvĭch), 1856–1929, Russian grand duke and army officer; first cousin of Czar Alexander III and grandson of Czar Mearing-Smith, 0171 528 2108 Samantha Samantha good witch married to a mortal. [TV: “Bewitched” in Terrace, I, 94–95] See : Witchcraft Ashworth, 0171 528 2565 or Media enquiries Roy Roy, city (1990 pop. 24,603), Weber co., N Utah, near Great Salt Lake; settled by Mormons 1877, inc. 1937. Computer equipment is manufactured, and many residents work at nearby Hill Air Force Base. Payne
The surname Payne stems from paganus, see pagan. People
or Brunswick Brunswick, cities, United States Brunswick. 1 City (1990 pop. 16,433), seat of Glynn co., SE Ga., on St. Simon's Sound near the Atlantic coast; laid out 1771–72, inc. 1856. It is a port of entry with numerous container docks. Andrew Grant, 0171 404 5959 |
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