BT profits fall seven per cent
BT has reported that year-on-year third-quarter pretax profits fell by seven per cent.
BT has reported that year-on-year third-quarter pretax profits fell by seven per cent.
Net income fell to £365 million, down from £1.46 billion 12 months ago. The results were in line with market expectations.
The world's oldest telecommunications company said poor performance in wholesale revenue and operating profits, which fell 20 per cent to £120 million, hurt its bottom-line.
Nonetheless, new broadband connections in its retail unit remained strong, adding 511,000 new connections and 117,000 new customers in the third quarter.
Earnings before interest, tax, depreciation and amortisation (EBITDA) and earnings per share both found year-on-year gains, according to the update.
"This has been another solid performance. We have delivered our twenty third consecutive quarter of year on year earnings per share growth," said BT chief executive Ben Verwaayen.
"We remain the UK's number one retail broadband provider with 35 per cent of the installed DSL and LLU base, and BT Vision customers more than doubled in the quarter."
Mr Verwaayen, who began cutting jobs and restructuring the company last year, said he expected growth to continue in revenue, EBITDA, earnings per share and dividends.
Shares in the London-based telecommunications group have fallen almost seven per cent in early trading today to 245p per share after starting the day up at 251p.
