Cable and Wireless Communications Limited (C&W) yesterday reported a tenfold increase in post-tax losses for the third quarter ended September 30, 2019.
For the third quarter, Caribbean operations saw revenue of US$595.9 million but expenses and charges resulted in a net loss of US$243.3 million for the period. Comparatively, at September 2018, revenue was US$551 million and losses US$20.6 million. For the nine months to September, total losses were US$343.4 million, made on revenue of US$1.77 billion. In September 2019, revenue was US$1.7 billion with losses of US$99 million.
C&W is a provider of mobile, fixed and sub-sea telecommunications services in 24 countries, primarily in Latin America and the Caribbean.
“While our assessment of the losses attributable to Hurricane Dorian is ongoing, our preliminary evaluation has resulted in a $14 million impairment of fully damaged or destroyed assets, primarily property and equipment.”– Cable and Wireless
Directors noted in the nine month report that they have identified material weaknesses in their internal control over financial reporting.
“The material weaknesses will not be considered remediated until the applicable new or enhanced controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively,” it was noted.
Directors drew attention to the impact of Hurricane Dorian in September 2019. Hurricane Dorian impacted certain areas of its Bahamas market, resulting in significant damage to homes, businesses and infrastructure.
“In connection with Hurricane Dorian, we experienced adverse impacts to revenue, OCF and RGUs. While our assessment of the losses attributable to Hurricane Dorian is ongoing, our preliminary evaluation has resulted in a $14 million impairment of fully damaged or destroyed assets, primarily property and equipment.”
Parent company Liberty Latin America reported US$967 million in revenue, US$70 million of operating loss and US$380 million in operating cash flow.
In early October, the company announced the US$1.95 billion acquisition of AT&T’s wireless and wired operations in Puerto Rico and the US Virgin Islands.
With operations in the Caribbean and Central America, C&W is owned by Liberty Latin America and headquartered in London, in the United Kingdom.
The company was formed when Cable & Wireless plc demerged in 2010 to form two companies (the other being Cable & Wireless Worldwide plc). Then in November 2015, Liberty Global announced it would purchase Cable & Wireless Communications.
The company was officially acquired by Liberty Global on May 16, 2016, and was integrated into the LiLAC Group (Liberty’s Latin American and Caribbean Group).
It is now owned by Liberty Latin America following the split of Liberty Latin America from Liberty Global effective December 29, 2017.