BT beats analyst expectations; outlines broadband plans

13 May 2010

BT has posted revenue of GBP20.9 billion (USD31.1 billion) for the year ending 31 March 2010, down 2% year-on-year but ahead of analyst expectations. Excluding favourable foreign exchange movements of GBP297 million and acquisitions of GBP31 million, underlying revenue decreased by 4%. Pre-tax profit, however, soared from a loss of GBP244 million to a profit of GBP1 billion on the back of total underlying cost reductions of more than GBP1.7 billion. Capital expenditure meanwhile was cut by 18% to GBP2.5 billion. Looking to the future, BT has forecast that revenue will fall to approximately GBP20 billion in 2011 but will return to positive growth in 2013. It also pledged to invest a further GBP1 billion (bringing the total to GBP2.5 billion) to extend the rollout of fibre to two-thirds of UK premises by 2015, dependent on an acceptable investment environment. The telco said it expects four million homes to have access to superfast broadband, with speeds of up to 40Mbps, by the end of this year.

United Kingdom, BT Group (incl. Openreach)