Cable & Wireless (C&W) has predicted a further revenue drop of around five per cent for the first six months of the year compared with the same period last year.
The telco said its planned 6500 job cuts, announced in March and due for completion at the end of this month, would protect margins, but the news prompted shares to fall 12 per cent to 276p by 16.30 BST.
C&W also said that sales for the next six months were expected to be down by around five per cent compared to last year, but added that it had a strong order book and saw good demand for data and Internet Protocol services.
In March, the firm predicted revenue growth of 15 per cent, although this was lowered to five per cent in May, before today's revised estimation that sales will fall five per cent on the year.
C&W has been hit by increased competition, excess network capacity and cancelled orders as some of its customers went to the wall.
Analysts said the news was pretty grim, and suggested that the figures meant C&W was cutting prices and would have to continue to do so.
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