Poor reception

4 March 2008 By Mike Verdin

Investors don t think much of the lofty UK growth targets set by the telecoms group s boss. Its shares fell 10%. C&W s history of failing to live up to promises may be one reason for the fallout. Pluthero s potential exit before the going gets really tough may be another.

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Cable & Wireless forecast that its Europe, Asia and US division would grow revenues by 58% a year, and ebitda by 2025% a year, in the five years from April.

Capital expenditure would remain at about 10% of revenues during the period, with free cash flow before financing rising to about 50% of ebitda.

Revenue growth would be driven by new applications, convergence between mobile and fixed technologies, and managed services, C&W said.

The immediate market reaction was to send C&W shares 10% lower to 160p.

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