As Cable and Wireless (C&W) plc seeks court and shareholder approval for a demerger that will see the group split in two segments, the board is still projecting that C&W International will bring in earnings before interest, taxation, depreciation and amoritisation (EBITDA) of US$900 million.

But C&W’s board believes that trading continues to be challenging within the Caribbean, where it operates under the name LIME.

“Whilst we are holding market share, lower usage by customers and more aggressive price promotions means that revenue and EBITDA continue to trend in line with the first half of 2009/10,” said a release made by the British telecom yesterday. “We believe that the market conditions within the Caribbean region will remain difficult through the remainder of this year and into next.”

Trading performances on in Panama, Macau and Monaco have seen improvement, on the other hand.

The rest of the group’s operations is expected to make EBITDA of approximately £430 million during the current financial year, which ends March 31.

C&W hopes to get approval from shareholders and the court on February 25, 2010 for the demerger, which will result in separate public listings for Cable &

Wireless Worldwide plc (“Worldwide”) and Cable & Wireless Communications Plc (“Communications”), the new name for Cable & Wireless International (CWI).

The demerger is expected to complete and trading to start in the shares of the two companies by the end of March 2010.

Over the years, C&W’s operations outside of Britain have represented the telecom’s profit centres.

For instance, from April 1, 2006 to September 30, 2009, Cable & Wireless Communications has repatriated US$1.55 billion of cash to Cable and Wireless plc.

On the other hand, since 2005/06, Cable & Wireless Worldwide’s operating cash flow improved from an outflow of £332 million to an expected inflow of about £80 million this financial year.

The demerger will facilitate financing of the two separate entities including US$500 million of new credit facilities already secured for C&W Communications and the proceeds from US$500 million bond offering announced yesterday.

At the end of the demerger, Cable & Wireless Communications Plc will be chaired by Sir Richard Lapthorne, who is the current chairman of C&W PLC, the existing CEO and CFO of C&W International — Tony Rice and Tim Pennington — will keep their roles in C&W Communications.