BT 3Q results disappoint

7 Feb 2008

BT Group has reported a 30% fall in third quarter pre-tax profits, and missed revenue targets as competition in the broadband market and a decline in premium-rate calls hit the company. BT saw a 1% rise in group revenue to GBP5.15 billion (USD10.1 billion) in the three months to the end of December, just short of analysts expectations. Pre-tax profit for the period fell to GBP447 million, from GBP639 million in the same period last year, as restructuring costs of GBP76 million weighed on the results. The worst performer was BT’s wholesale division, where revenues fell 11% to GBP1.2 billion, as prices for broadband services fell and other telcos which had used BT’s network migrated customers onto their own telephone exchanges. BT’s Global Services division, which provides IT services to companies, saw revenues grow 6% to GBP1.97 billion, while revenues at the retail division grew 2% to GBP2.15 billion, as increasing numbers of broadband customers helped offset a decline in traditional voice revenues. BT added 177,000 broadband customers in the quarter taking its total number to 4.3 million.

United Kingdom, BT Group (incl. Openreach)