Cost-cutting helps lift BT profits despite sales decline

3 Feb 2012

BT has posted revenue of GBP4.77 billion (USD7.55 billion) for its fiscal third quarter ending 31 December 2011, a fall of 5% on the back of sales declines at each of the company’s Global Services, Retail and Wholesale units. However, cost-cutting and lower regulator charges helped the telco to report a 22% increase in operating profit, reaching GBP764 million. Broadband subscriber growth was particularly positive, with 146,000 subscribers added during the period, corresponding to approximately 56% of all UK broadband subscriber net additions.

Commenting on the results, CEO Ian Livingston said: ‘We have delivered another quarter of growth in profits and cash flow despite the economic headwinds. Our investment to support our customers and improve our services has resulted in new contract wins around the world, with orders so far this year up over 50% in Asia Pacific and Latin America. In the UK, our fibre rollout has accelerated bringing super-fast broadband within reach of over seven million homes and businesses and we remain the number one broadband retailer with over six million customers. Our fixed line base has now grown for the last five quarters and our active consumer line loss is at its lowest for five years.’

United Kingdom, BT Group (incl. Openreach)