By Sonya Rabbitte, 13 February 2002 10:50
NEWS Shares in Cable & Wireless hit new lows this morning after the company admitted to using controversial accounting practices to hit its quarterly revenue targets. Shares had dropped 6.86 per cent to 222p by 10:00(GMT), after the company said it had leased £369m worth of spare carrier capacity to other networks to boost 2001 revenue. Cable & Wireless admitted many of these deals were logged as commercial transactions even though they did not involve cash changing hands. Most of last year's deals were also counted in 2001 revenue even when payment was not immediate. Company officials have defended the move, claiming it is widespread practice in the industry, and not illegal.
In order to post a comment you need to be registered and logged in.
Log in or create your silicon.com account below