Cable & Wireless reported an expected drop in first-half revenue today and progress on its exit from the United States, having shaved £200 million off lease commitments there.
The British telecoms group has spent much of the past five months trying to get out of its US Web hosting business at a reasonable price.
The potential cost of closing the US division, estimated to be as much as £850 million, has weighed on the minds of investors. C&W shares approached 12-month highs last week on hopes the transatlantic retreat would be completed soon.
The stock rose 2.3 per cent to 131p in early trade, though the first-half results surprised few in the market.
Revenue fell to £1.939 billion, in line with forecasts and down from a £2.36 billion last year that included European operations no longer on the books. Operating profit before exceptionals was £101 million compared with a £310 million loss last year.
C&W faces the double challenge of boosting earnings margins to the mid-teens industry standard in its home market, while seeing off competitive threats in key markets in the Caribbean.
The company, already cutting 1,500 jobs at home, said it had cut 800 jobs at its National Telcos division, mostly in Panama and the Caribbean islands. Around 2,500 jobs have been cut in total, bringing the group headcount down to around 17,500.
Like many other telecoms groups, C&W has also cut deep into its capital expenditure. Spending fell to £172 million in the first half compared with £450 million one year before.