LONDON, England (CMC) – Telecommunications giant Cable & Wireless says the tough economic climate in the Caribbean will continue to weigh heavily on its operations during the fiscal year 2012.

Chief Executive Officer Tony Rice said the Caribbean, which accounts for 30 per cent of the company’s revenue, has been more difficult than it anticipated during its demerger in March last year.

He said the company continues “to face weak or declining economies across the region.”

Rice said the weaker than expected performance and outlook in the region hit the company’s shares, which have fallen 24 per cent over the past 12 months.

For the Caribbean, he said Cable and Wireless Communications expects earnings before interest, taxes, depreciation and amortisation, excluding its recently acquired 51 per cent stake in the Bahamas Telecommunications Company, of between US$180 million and US$210 million in fiscal year 2012.  

That compares to US$229 million in the year ended March 31, 2011, Rice said.

Securities analyst Steve Malcolm said while C&W Communications full year headline figures “look pretty reasonable,” its struggling Caribbean operations are a big concern.”

The group’s balance sheet “looks more and more stretched,” he said.