BT: Q4 boosted by new wave revenues

15 May 2008

BT has reported that its fourth quarter revenues for the period ended 31 March 2008 grew 2% year-on-year to GBP5.4 billion (USD10.5 billion), slightly better than expected, thanks to an increase in revenues from ‘new wave’ services which offset the continuing declines from its traditional businesses. New wave revenues – from broadband and corporate IT contracts – were up 9% at GBP2.3 billion and now account for over 40% of the group total. Revenue from BT’s traditional business declined by 2% over the three months; particularly hard hit was its wholesale business which saw revenues from other companies drop by 15%. 4Q profits were up 3% at GBP714 million. The company added 499,000 new broadband customers during the fourth quarter. Of those total connections, 150,000 were new customers to BT’s own internet service provider BT Retail, which remains the UK’s number one retail broadband provider with a customer base of 4.4 million.

For the year as a whole, BT’s revenues rose 2% to just over GBP20 billion, with new wave accounting for more than GBP8 billion. Traditional revenues decreased by 1%. Profit for the year was GBP1.97 billion, down from GBP2.48 billion in the previous year, because of more than GBP400 million worth of restructuring charges.

United Kingdom, BT Group (incl. Openreach)