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BT profits crash
Global Services loses half a billion
BT's pre-tax profit fell 81 per cent compared to the third quarter of last year.
In the three months ended 31 December 2008 the telco made £113m in profit, compared to £601m in the last three months of 2007.
Revenue was £5,437m, up five per cent from £5,154m the year before. BT is writing off £336m as a result of contract reviews at BT Global Services, announced in January.. BT shares are down about five per cent at the time of writing.
BT promised quick action to fix the problems at Global Services - chief executive Ian Livingstone said the rest of the group managed the best profit growth for five years but this was eaten by Global Services loss of £501m.
BT Wholesale brought in revenues of £1,183m, down two per cent. Retail made £2,134m, down 0.6 per cent on last year while Global Services made £2,253m up 15 per cent. But this 15 per cent growth was due to a nine per cent improvement in currency rates and six per cent from acquisitions. UK revenues fell three per cent but was offset by 40 per cent growth elsewhere.
Openreach made revenues of £1,329m, up 0.8 per cent.
BT had 13.6m wholesale broadband connections on 31 December 2008, including 5.5m LLU lines. There were 296,000 net additions during the quarter. BT's retail arm claimed 4.7m customers - a 34 per cent market share.
Full release here.
BT has net debt of £11,060m, up from £10,175m on 31 December 2007. ®