C&W picks up £15m Centrica contract

But it was one difficult quarter...

Cable and Wireless has won a £15m, three-year contract to carry traffic generated by Centrica Telecommunications, a bright spot in a quarter that has seen it slash costs and commence far-reaching restructuring. Centrica's telecoms services take the form of One.Tel and British Gas Communications customers in the UK, typically domestic users who use carrier pre-selection (CPS) to have there calls routed away from BT's network because it is a cheaper option. Centrica, already a C&W customer, will use Cable and Wireless Indirect Access Transit, which is designed to take calls away from the BT-run local loop at the earliest possible interconnect point. Further CPS deals are expected to come C&W's way over the coming quarter. The troubled telco announced revenue for the three months ended 30 June 2003 remained almost steady, down 1 per cent at £974m, though it would have been higher if the pound hadn't strengthened against the US dollar and Caribbean currencies. C&W's cash position was boosted by the disposal of its 14 per cent stake in Hong Kong's PCCW for £229m. The company's retrenchment over the most recent quarter saw it shed 1,279 staff, 524 in the US.