British duo reveal end-June financials

30 Jul 2009

British fixed line and broadband incumbent BT Group has claimed it is on track to deliver reductions in operating costs and capital expenditure (CAPEX) of more than GBP1 billion (USD1.64 billion) this year. In its financial results for the three months ended 30 June 2009, BT said that underlying operating costs and CAPEX fell by GBP357 million to GBP4.29 billion, an 8% year-on-year reduction. Additionally, whilst the company reported a 3% and 18% y-o-y fall in earnings before interest, tax, depreciation and amortisation (EBITDA) and profit before tax respectively, overall results were better than expected. For the quarter BT reported EBITDA at GBP1.37 billion, while profit before tax was GBP427 million compared to GBP519 million at end-June 2008. Revenue meanwhile increased 1% year-on-year to GBP5.24 billion. With EBITDA decline once again linked to poor performance by the group’s Global Services division, signs of improvement have been reported at the unit, with EBITDA almost double the previous quarter. Commenting on the results Ian Livingston, BT’s CEO, said: ‘We have made a solid start to the year against a background of challenging trading conditions. BT Global Services is making progress although there is still much to do.’

BT rival, triple-play provider BSkyB, has also reported recent financial progress, releasing results for the twelve-month period ended 30 June 2009. The operator announced that it had signed up 124,000 subscribers in the final quarter of its fiscal year, bringing its total net additions for the year to 462,000, its highest level for five years. BSkyB also said that 16% of its subscribers were now signed up to its triple-play offerings, compared to an 11% take-up a year ago. With the increase in subscribers taking more than one service the operator said that average revenue per user (ARPU) had increased to GBP464 per year. BSkyB’s adjusted revenue for the full-year period was reported at GBP5.36 billion, while it posted an adjusted operating profit of GBP780 million, up 4% year-on-year.

United Kingdom, BT Group (incl. Openreach), Sky