2/16/2012 2:28 AM ET
(RTTNews) - Cable & Wireless Worldwide PLC (CW.L: News ) said trading in three months to December 2011 were in line with management expectations. Challenging market conditions continue since interim results, while full year outlook remains unchanged, the company noted.
Despite difficult trading conditions in the third quarter, the company broadened and deepened existing relationships with key enterprise and public sector clients as well as winning new client mandates in the UK and overseas. Corporate and public sector customers continued to take a cautious approach to their ICT spend, reflecting on-going economic concerns and market uncertainty.
Voice margins have declined in line with recent guidance. Growth in the IP & Data market continues to slow as downward price pressure on contract re-sign nullifies the opportunities from increased demand for data capacity.
The company also noted that it executed plans with the aim of reducing support function cost. Headcount in support functions is down 7% since the beginning of 2011/12 and will fall further by the year end. It is also developing plans to further reduce the cost base through process efficiency and reduced cost per employee.
Gavin Darby, Chief Executive Officer, said,
"..We have already made progress in the delivery of our performance improvement plan which underpins the trading update we have made today and our confidence in delivery of the full year 2011/12 results.."
Looking ahead, the company anticipates full year performance to be in line with current management expectations.
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by RTT Staff Writer
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