CABLE & Wireless Communications shocked investors by warning that it expects a further slump in earnings from its Caribbean arm.
The company said economic conditions had hit demand in the 13 countries making up the region.
As a result, CWC said underlying earnings were likely to slide further from the £142m recorded in the year to March, which itself represented a 15% fall.
Call revenues in the region fell by 9%, with both lower usage and higher numbers of people leaving.
CWC now expects underlying earnings from the Caribbean in 2011-2012 to be in the region of £112m to £130m – down by a third in two years and at the bottom of the range.
The warning sent shares in CWC down by 5p to 43.5p.
Tony Rice, chief executive of London-based CWC, which also has operations in Macau, Panama and Monaco, said the Caribbean had been more difficult than expected and the group continued to face weak or declining economies in the region.
Profits overall rose by 21% to £287m last year, but on an underlying basis the performance was flat as revenues from the Caribbean business declined by 3% to £528m.