Tax credit boosts BT’s bottom line

26 Jul 2007

BT Group has reported a 31% rise in first-quarter net profit for the three months ended 30 June 2007, to GBP607 million (USD1.2 billion) from GB464 million in the year-ago period, boosted by a tax credit of GBP119 million. Revenue increased 3.5% to GBP5.03 billion from GBP4.86 billion. Despite stiff competition from broadband rivals Sky and Carphone Warehouse, BT claimed 38% of broadband customer additions in the quarter, equivalent to some 459,000 new users. BT had 11.2 million wholesale broadband connections (DSL and LLU) at the end of the first quarter, including 2.4 million local loop unbundled lines, an increase of 2.5 million connections year-on-year as the broadband market continued to show strong growth. ‘We have got the year off to a strong start with another robust all-round performance. Revenue, EBITDA and earnings per share all continue to grow as BT builds on the achievements of last year,’ Chief Executive Ben Verwaayen said in a statement.

United Kingdom, BT Group (incl. Openreach)