BT reports 1Q results; retail performance solid but wholesale lagging

31 Jul 2008

Leading UK fixed line and broadband provider BT has announced a 3% rise in profits year-on-year for the fiscal first quarter ended 30 June 2008, with the operator generating GBP5.17 billion (USD10.23 billion) in the three-month period. BT’s Retail unit achieved revenue growth of 3%, adding 103,000 broadband customers over the period, taking the company to 4.5 million, and claiming a 35% market share. In contrast, revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) at the wholesale division fell 12% and 14% respectively, with strong competition in the broadband arena understood to have impacted on performance. BT also announced that it has raised its cost saving target by GBP100 million, and is aiming to achieve total savings of about GBP800 million this year.

United Kingdom, BT Group (incl. Openreach)