CWJA reports another quarter of losses

Cable and Wireless Jamaica Limited reported yet another quarter of losses. For the third quarter, the group recorded net losses of approximately $1.3Bn (loss per share: -$0.07). This is more than three times the net loss of $351Mn ($-0.02) that was recorded over the same period last year. The performance during the quarter now brings net losses for the nine month period to $2.4Bn (EPS: -$0.15). Higher operating costs associated with increased marketing and employee compensation eroded the 9.5% growth in gross revenues. The company is currently in exploratory talks with a global service provider to examine the feasibility of the sale or disposition of the part of the business comprised of its field service operations. Although the ongoing talks are geared at examining opportunities to achieve cost savings and improved customer service, the intense competition in the telecommunications industry is likely to continue to restrict growth in revenues for the company.