British telecoms giant BT has released its financial results for the quarter ended 31 December 2016, with reported revenue up 32% year-on-year at GBP6.128 billion (USD7.62 billion), which it said was largely attributable to its acquisition of EE in January 2016. Indeed, the company’s underlying revenue excluding transit and adjusted for the acquisition of EE was down by 1.5% y-o-y in the period under review. Similarly, while adjusted EBITDA totalled GBP1.870 billion in fiscal Q3, up 18% against the corresponding period of 2015, underlying EBITDA adjusted for the acquisition of EE fell by 8%. Adjusted pre-tax profit stood at GBP826 million, representing a decline of 8% y-o-y.
Following reports earlier this week that BT had been forced to write down the value of its business in Italy by more than GBP500 million, the carrier has now confirmed that total adjustments relating to the investigation of accounting practice at its Italian operations totalled GBP268 million for prior year errors and a specific item charge of GBP245 million for changes in accounting estimates.
In operational terms, BT ended December 2016 with 9.276 million retail fixed broadband connections on its books, up from 9.193 million at the end of September, while IPTV accesses also continued to rise, reaching 1.736 million at year’s end (up 3.1% quarter-on-quarter). Meanwhile, in the mobile arena it reported a subscriber total of 27.807 million at the end of December, down from 27.856 million three months earlier, with an increase in post-paid and MVNO accesses failing to offset a drop in pre-paid connections.