Cable and Wireless Communications warned on Friday that increasing competition and weak demand from corporate clients had hit its business in Panama, taking the shine off solid performances elsewhere.

The group, which traces its history back to British cable companies founded in the 1860s and trades in countries from Macau to Monaco, said the Panama business had not progressed as planned.

As such we do not expect to achieve the outlook range for this business, it said.

It now expects core earnings for Panama for the second half of the year to be similar to the $127 million (80 million pounds) reported in the first half, putting it below the previously stated outlook range for the full year of $270 to $295 million.

The group also said it had continued to struggle in Jamaica, and it now expects to make a significant non-cash write-down of the carrying value of the asset at the full-year results.

Balancing out the weakness in those markets, the group expects both Macau and Bahamas to exceed previous guidance while the businesses in Caribbean and Monaco & Islands trade in line with the guidance.

We continue to make good operational progress, Chief Executive Tony Rice said.

(Reporting by Kate Holton)