By Lilly Vitorovich
Of DOW JONES NEWSWIRES
LONDON -(Dow Jones)- U.K. telecom carrier Cable & Wireless PLC (CW.LN) said Thursday it will push ahead with plans to demerge amid early signs of improving conditions in financial markets, as it reported a 30% jump in first-half earnings driven by its Worldwide division.
"The board believes that a demerger is the right structure to drive further growth and value for shareholders by enabling both businesses to pursue their strategies independently, and it is keen to push ahead as quickly as possible," Chairman Richard Lapthorne said in a statement.
Cable & Wireless will publish further information about the demerger before the end of the month, which will include indicative timing, the company said.
Earnings before interest, tax, depreciation and amortization before exceptional items--the key figure tracked by U.K. investors--rose 30% to GBP463 million for the six months ended Sept. 30, from GBP357 million a year earlier, just beating market expectations for pre-items Ebitda of GBP460 million.
First-half revenue rose 13% to GBP1.86 billion, below market expectations of GBP1.95 billion. That compares with GBP1.65 billion a year ago.
Cable & Wireless operates two distinct businesses, which it has split operationally ahead of a planned demerger.
The Worldwide business specializes in offering communications services such as Internet Protocol, data, voice and hosting to large enterprise, reseller and carrier customers. It operates globally, with core markets in the U.K, Asia and Europe, Middle East and Africa, and provides connectivity in 153 countries.
CWI, meanwhile, operates fixed-line and mobile operations in former colonial countries such as Panama, Macau, some Caribbean Islands and the Channel Islands.
The group's biggest rival in the U.K. is BT Group PLC (BT).
Lapthorne said the group has booked a "good set of results especially when viewed against the recession."
Cable & Wireless declared an interim dividend of 3.16 pence a share, up 12% from 2.83 pence a year earlier.
Cable & Wireless shares closed at 148 pence Wednesday, valuing the company at GBP3.81 billion.
-By Lilly Vitorovich, Dow Jones Newswires; 44-0-207 842 9290; lilly.vitorovich@dowjones.com