British fixed line incumbent BT Group has announced its quarterly financial results for the three months ended 30 September 2009, and has revised its full-year guidance following better-than-expected performance. The telco posted a 3% year-on-year decline in revenue for the three-month period to GBP5.12 billion (USD8.4 billion), in line with previous forecasts. Earnings before interest, tax, depreciation and amortisation (EBITDA) however, rose 2% to GBP1.44 billion, with the operator claiming the increase reflected an improvement in all of the group’s units. In addition, BT reported that total underlying costs for the first six months of its financial year had fallen by GBP932 million.
On the back of the results the company said that it now expected its full-year revenue to decline by between 3% and 4%, an improvement from the previous forecast of a 4%-5% drop, while it also said that it expected total underlying cost reductions to total at least GBP1.5 billion for FY2009/10, up from the earlier estimates of around GBP1 billion.
Ian Livingston, BT’s chief executive, said of the results: ‘We have had another quarter of progress but there remains a lot more to do. With total cost reductions of over GBP900 million in the first half, we have made significant headway towards our previous target of well over GBP1 billion for the full year. We now expect to generate at least GBP1.6 billion of free cash flow this year, compared with our previous target of over GBP1 billion.’