Digital TV installation hits C&W revenues

Digital TV installation hits C&W revenues
Alex Mayhew-Smith Cable & Wireless Communications (C&W) has warned that the cost of introducing cable digital TV services will impact on its revenues in the next financial year. Greg Clarke, C&W’s CEO, said: “In the short term it will reduce revenue growth in consumer markets in 1999/2000.” The company estimates an extra ?60m will be needed to introduce and run digital services. “These factors will reduce profit before tax in 1999/2000 to significantly below 1998/1999 levels,” said Clarke. The company said it will need to take on 2,000 employees over the next two years as it introduces the services. C&W announced it will run a trial of the service in Manchester and in London from July. Turnover for the firm rose 15 per cent to ?2.6bn in the year to March 31 and a pre-tax profit of ?140m, compared to a loss of ?49m last year.


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