BT hikes dividend to emphasis ‘new wave’ success

20 May 2005

BT has announced fiscal fourth quarter earnings at the top end of expectations and pledged higher pay-outs to shareholders. In the three months to the end of March the UK incumbent reported pre-tax profits of GBP557 million (USD1.02 billion), up 21% on the corresponding period of 2004, on the back of a 2% increase in turnover to GBP4.87 billion. Wanting to reinforce its success in transforming itself from traditional telco to global network solutions provider, BT was keen to point out the 27% increase in turnover from its ‘new wave’ offerings such as broadband and network services, which rose to GBP1.37 billion and help offset a 9% decline in revenues from traditional businesses. Full-year pre-tax profits were up 4% on 2004 to GBP2.09 billion, as revenues rose 1% to GBP18.62 billion. The telco announced a full-year dividend of 10.4 pence, up 22%, and promised that future pay-outs would rise to two-thirds of underlying earnings by 2008.

United Kingdom, BT Group (incl. Openreach)