TELECOMMUNICATIONS group Cable & Wireless has announced strong profits growth in its global and Irish operations. Overall, it reported operating profits of £746 million for the six months to the end of September, an increase of 17 per cent on the same period last year.
Growth in the company's Irish division's operating profits were slightly ahead of group profits, according to its chief executive Mr Nick Koumarianos. The rise in turnover was slightly less than the 14 per cent increase in group turnover, he said.
Mr Koumarianos said yesterday that the company had managed to turn in good operating profits despite a lower turnover because the Irish division had been restructured last year. "The benefits are now coming through and costs are markedly lower this year," he said.
Mr Koumarianos said the company had been able to maintain its margins by concentrating on "niche and innovative products".
He said he expected new opportunities to arise in the business market for international traffic in the coming year. We have brought the Cable & Wireless network as far as Aughnacloy, Co Tyrone and we are waiting for opportunities to arise next year," he said.
"We now have almost 4,000 customers," said Mr Koumarianos, who claimed that the company's client list includes almost all the top 1,000 companies in Ireland. New clients include Ryanair and Creative Labs.
Like other competitors to Telecom Eireann, Cable's Irish operation expects to cash in on the opening up of the telecoms market here. An EU Commission ruling on several derogations which the Government is seeking is expected next week.
It is believed that the Commission's ruling will accelerate liberalising the market for the business sector.
More details of the Cable & Wireless Irish division's financial performance will emerge when the full year results are published. Last year the company returned a 10 per cent increase in profits to £570,000. Turnover grew by 6 per cent to £18 million.
Turnover during the six months rose 9 per cent to £2.9 billion with the growth coming mainly from Hong Kong, North America and the Caribbean.
