Cable & Wireless maintains 2013 interim dividend

Key Highlights

Group mobile revenue up 3%; growth in all regions

Mobile data revenue up 29%

Panama revenue and EBITDA up 3%

Panama licence extension and additional spectrum

Jamaica mobile customers up 23%

Progress on cost reduction programme; Caribbean operating costs down 6%

Completion of Macau and Islands disposals realising net proceeds of US$1.4 billion

Interim dividend of US1.33 cents per share

Note: Figures above are for continuing operations. EBITDA and adjusted earnings per share are defined in the footnotes on the following pages, reconciliations of EBITDA and adjusted earnings per share are provided on page 27

Commenting on the Group results, Tony Rice, Chief Executive of Cable & Wireless Communications Plc, said:

"Our first half was characterised by an impressive performance in our mobile business and good progress on our cost reduction programme. Growth in mobile revenue and EBITDA of 3% for the Group was a strong result given competition and other market challenges we faced.

"We are setting the standard for mobile data in our markets, and customers are responding. Mobile data revenue rose 29% over the half with all regions seeing growth. We are continuing to invest in mobile data, particularly in Long-Term Evolution (LTE) networks, which we launched in Monaco recently and will launch in The Bahamas and Cayman in the second half.

"We continue to improve in Jamaica, particularly in mobile where our customer base is up 23% and mobile service revenue rose 14% at constant currency during the half. We are presenting innovative products to our customers, and have successfully positioned our business as the 'value' provider, in a very price sensitive market.

"Our productivity and efficiency programme has started well. The Caribbean has been the focus with operating costs reducing by US$18 million in the first half and we expect to step up the pace in order to meet our US$100 million target. Centralising our regional operations in our new Miami office will be a key driver and I'm pleased to report we've made good progress in establishing our new regional hub.

"We have largely completed our disposal process, with the Seychelles transaction expected to complete this year. We have agreed to unwind the agreement we announced with Batelco for a minority stake in our Monaco business at the same time. Monaco remains a strong and growing operation within our Group and we are reviewing our options for the business.

"These results show our core businesses are performing well - providing a strong platform on which we can grow.  As I hand over the reins to Phil Bentley, I am confident we have a business well prepared for future growth. I wish him and the rest of our excellent team the very best in delivering that future."

Outlook

We maintain the guidance given at the full year, and expect:

2013/14 Group EBITDA to be similar to 2012/13

US$100 million cost reduction across the Group achieved on a run rate basis within two years

Anticipated cost to deliver between US$150-200 million, of which circa US$100 million will fall in 2013/14

Caribbean medium term EBITDA margin target of greater than 30%

Targeted investment in high speed networks leading to capital expenditure of approximately US$300 million in 2013/14

Dividend for 2013/14 of US 4 cents