KINGSTON: TELECOMS provider Cable & Wireless Jamaica (C&WJ), currently branded as LIME, more than doubled its annual net loss to over $9.17 billion for its year ending March 2015 due to exceptional items.
However, core activity at the company increased, with its operating profit before exceptional items more than doubling to $1.6 billion from $766 million a year ago.
KPMG Chartered Accountants, in issuing the audited results, indicated that although C&WJ losses grew to $9.1 billion from $3.5 billion a year earlier, that it continues to receive the support of its parent company Cable & Wireless Communications (CWC).
“Until the group returns to profitable operations, it remains dependent on its ultimate parent for continued financial support. The directors have received a letter from the ultimate parent company indicating that financial support will be provided for the foreseeable future,” stated KPMG.
The company earned $21.6 billion in revenue, or 17 per cent more year on year, mainly due to a rise in mobile activity. Specifically, mobile revenues totalled $8.7 billion compared to $6.7 billion a year earlier. It was followed by fixed voice at $6.5 billion which remained flat year on year, managed services at $3.6 billion compared to $2.9 billion a year earlier, and broadband and video at $2.7 billion compared to $2.3 billion a year earlier.
However, exceptional items totalling $6.9 billion neutralised any revenue growth during the period. The company’s restructuring costs played a large role in exceptional items, “including employee termination and contract settlements as well as costs relating to the settlement of material legal disputes which are non-recurring and material”, stated the auditors.
For a number of years CWC subsidiary operations in the Caribbean traded under the name LIME. But following the merger with Columbus Communications, the consumer business of LIME will in future trade under the name Flow, explained the auditors.
At a recent briefing, CWC Chief Executive Phil Bentley told shareholders that its acquisition of Columbus International puts Latin America as its core growth market, rather than slower-growing nations of the Caribbean. In November 2014, CWC announced an agreement to acquire Columbus International for US$3.025 billion, which was completed on 31 March 2015.
