Cable & Wireless cuts full-year guidance, to demerge

LONDON: British telecoms group Cable & Wireless (C&W) cut its full-year earnings guidance yesterday due to weakness in the Caribbean but said stabilizing conditions elsewhere would allow it to push ahead and demerge.

Analysts said they had expected the cut in earnings guidance, as falling tourist numbers in the Caribbean resulted in less demand for its services, but added that the comments on a demerger did not really add anything new.

The announcement also accompanied first-half results which missed targets for group revenue but beat earnings forecasts due to cost cuts and a stronger performance in the Worldwide division. Shares in the group were down 7 percent by 0910 GMT.