Wed, Aug 20, 2014, 4:25 AM EDT - U.S. Markets open in 5 hrs 5 mins

Recent

% | $
Quotes you view appear here for quick access.

Cable and Wireless plc (CWP) Message Board

  • dtn100 dtn100 Nov 6, 1998 10:42 AM Flag

    Throwaway buiness???

    It baffles me how anyone could possibly say that
    the internet assets acquired from MCI could be a
    "throwaway business." MCI desperately wanted to keep them.
    Governments on both sides of the Atlantic Ocean required that
    MCI sell the assets or else they would not approve
    the merger. The investor who says that CWP is
    "garbage" and that it just bought a "throwaway business"
    must be in some parallel universe because it has no
    similarity to anything I see.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • MCI had a number of business adventures which did
      not
      workout. Mexico, Local services, Rupert Murdock. But,
      their
      internet service was successful and growing
      rapidly.

      CWP got a bargain price for a rapidly growing
      business.
      This should help lessen the percent of earning form
      HKT.

      • 3 Replies to zzxxxx
      • >>The Wall Street Journal Interactive
        Edition -- November 6, 1998
        Business and Finance -
        Asia

        Hongkong Telecom Posts Modest Rise,
        Citing
        Effects of Slowdown, Competition

        Dow Jones
        Newswires

        HONG KONG -- Emphasizing that it is still in a
        transition phase, Hong Kong Telecommunications Ltd. Friday
        reported a
        modest 1.4% rise in interim net profit to
        6.1 billion Hong Kong dollars (US$788 million) for
        the six months ended Sept. 30,
        a far cry from the
        double-digit growth of previous years.

        But the former
        telecommunications monopoly said the result reflects a faltering
        domestic economy, the Asian crisis and keener

        competition hitting a company which is reinventing itself.
        "We expect the effects of the economic slowdown on
        our core
        businesses to endure for the remainder
        of this financial year at least," said Chief
        Executive Linus Cheung. "In addition, we
        anticipate
        that competition will intensify as Hong Kong becomes
        one of the most liberal communications markets in
        the
        world."

        The effects of competition were
        reflected in a 16% drop in revenue from international
        direct-dialing, or IDD, charges, which
        contributed HK$7.48
        billion. These charges represent 44% of overall revenue,
        down from 51% a year ago and 63% five
        years ago,
        and the company emphasized that part of its strategy
        is to wean itself from its one-time IDD cash cow.
        Revenue
        from non-IDD services now represents 56% of the
        total, up from 49% a year before.

        Under an
        agreement with the government, the IDD market will be
        thrown open from Jan. 1, although the telecom
        provider
        already faces competition in IDD calls, including
        from discount operators outside Hong Kong.


        Chairman Richard Brown, also chief executive of Hongkong
        Telecom's majority owner Cable & Wireless PLC, said Cable
        &
        Wireless fully backs any moves by Hongkong
        Telecom outside its home market. But executives didn't
        give details of where
        the company, which has about
        HK$15 billion in spare cash, would like to invest
        next.

        The company said it had 830,000 mobile-phone
        subscribers at Sept. 30, adding that revenue in this market
        grew by more than
        28%. In the previous period it
        reported 515,000 subscribers and 60% growth year on
        year.

        It reported that the subscriber base for its
        Netvigator service grew by 30% over the previous year,
        claiming a clear lead in the
        territory's Internet
        market, but didn't provide a number. At the same time
        last year, Hongkong Telecom said it had 150,000

        Netvigator customers.<<

      • The CW in US is only a marginal piece of the pie.
        Yes they have a billion dollar revenue but not much
        profit. They have only a token precence there. The
        profits of the CWUS hardly show up on the annual
        report.

        The CWP investment value is in its unloacked value
        that R. Brown is trying to shake loose. Having 50+
        telephone companies around the world is not a small
        thing.

        For the CWUS the MCI deal was great for them. They
        can now show up in the radar, more visibility=more
        potential customers=more business. Hopefully they will
        execute well.

        Regarding the "garbage" comment, we
        should appreciate the perspective. I personally disagree
        thought, especially since it was based on a performance
        comparison of CWP against MSFT. Everyone is garbage if you
        look it that way. CWP is a different kind of
        investment.

        If you know the new MSFT, CSCO, etc. for the next 5
        years then put all you money there. It is that simple.
        I like CWP because of its lower risk, global
        presence, and recently R. Brown. Certainly not because of
        its US unit (small player) which will hopefully also
        grow to make us all money.

      • The CW in US is only a marginal piece of the pie.
        Yes they have a billion dollar revenue, not much
        profit, they are the token precence. The profits US part
        of CW hardly shows up on the annual report.
        The
        CWP investment is in its unloacked value that R.
        Brown is trying to shake loose. Having 50+ telephone
        companies around the world is not a small thing.

        For
        the CW-US the MCI deal was great for them because
        they can now get in the map, more visibility=more
        potential customers=more business. Hopefully they will
        execute well.

        Regarding the "garbage" comment, I
        appreciate the perspective. I do disagree thought,
        especially since it was based on a CWP performance
        comparison against MSFT. The truth is that everyone is
        garbage if you look it that way. CWP is a different kind
        of investment.

        If you know which is the next
        MSFT, CSCO, etc. for the next 5 years then put all you
        money there. It is that simple. I like CWP because of
        its lower risk, global presence, and recently R.
        Brown. Certainly not because of its US unit (small
        player) which will hopefully also grow to make us all
        money.

 

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.