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To: Ian@SI who wrote (4507)	5/13/1998 9:52:00 PM
From: pat mudge	Respond to of 18016

C&W on Steroids????? [tomorrow's news tonight] >>>> THURSDAY MAY 14 1998ÿÿUK & Irelandÿ C&W: Launch planned in 20 European cities By Alan Cane Cable and Wireless, the UK's second largest telecommunications company, is planning to launch operations in more than 20 European cities as it moves to re-establish its image and branding on the continent. Dick Brown, C&W chief executive, said yesterday: "We will have facilities-based licences for fixed wire services in 12 European countries by the end of the year. We will be targeting business customers and niche markets." The company already holds operating licences in the UK, the Netherlands, Sweden and Ireland. Stephen Pettit, C&W executive director for Europe, said he expected to secure French, Italian and Belgian licences within two months, with Germany and Spain to follow by the end of the year. The company plans to invest about œ100m over the next two years to install high capacity telecoms switches in each city capable of handling voice and data transmissions. A network based on the most advanced data transmission technology, ATM, will connect Paris, Brussels, Zurich, Dusseldorf, Munich, Geneva and Vienna with the UK and the US. Mr Brown outlined his strategy for Europe during the announcement of the group's results for the year to March 31. C&W has had only a nominal presence in Europe since it pulled out of an alliance with the German company Veba a year ago. The new strategy is intentionally low key and low cost. An alliance with Telecom Italia, announced four weeks ago, provides C&W with what Mr Brown describes as "bookends" for Europe within which he plans to establish a network of licensed operations identified by the C&W brand. C&W will establish sales offices and sales staff in individual cities seeking two kinds of business. First, to operate as a carrier's carrier, moving competitors' traffic over its international network. Second, to attract high value business customers to whom it can offer a range of advanced services. "We intend to be the global transport company," Mr Brown said. The figures came in slightly above market expectations with profit before tax 54 per cent ahead at œ2.18bn (œ1.42bn), including œ487m in exceptional profits. Group turnover was 19 per cent up at œ7bn (œ6bn). Earnings per share came in 96 per cent ahead at 57p (30.3p) and a dividend of 12.25p (11.1p), a 10 per cent improvement, will be paid. Mr Brown said: "We have achieved double digit growth in both revenue and profit despite major strategic investments and adverse economic conditions in Asia. "Our strong growth rate in revenue compares to just 7 per cent two years ago. Today's results symbolise the transformation of C&W into a high performance operating company." The exceptional profits include œ519m for the sale of a 5.4 per cent stake in Hongkong Telecom and a œ518m compensatory payment for the premature loss of HKT's exclusive international licence in the former dependency. >>>>