Feeds

BT's profits plummet

Holds car boot sale to raise extra cash

  • alert
  • submit to reddit

Designing a Defense for Mobile Applications

Update BT's plans to sell off part of the family silver in a bid to reduce its debt burden and turn around the ailing giant does not appear to have found favour with the market.

By mid-afternoon, BT's shares were down 50p (6.35 per cent) to 738p, having started the day at 784p.

Furthermore, some press reports have talked of a crisis in the monster telco. If there is a crisis, BT's CEO, Sir Peter Bonfield, was hiding it well.

He said: "Today I am announcing the acceleration of BT's transformation through a radical and unprecedented restructuring of the business" adding that it BT was being "more radical than any other telecoms operator in the world". Read BT's strategic announcements in full here.

He also banged on about being a "decentralist" - which should help fuel further speculation that BT could eventually be broken up.

In a bid to reduce its £30 billion debt, the monster telco confirmed that the sale of 25 per cent Yell - its phone directories outfit - would go-ahead by the end of the fiscal year.

It also plans to flog up to 25 per cent of BT Wireless, it's mobile phone operation.

It also intends to sell 25 per cent of its network, creating a new company in the process called NetCo.

BT Ignite - its business-focused e-business operation - is also going to be made ready for sale.

It also plans to tighten its "market focus" and dispose of non-core assets outside Western Europe and Japan.

Job losses continue apace with 5,000 people losing theirs by the end of this year.

Together, it's hoped these proposals will reduce BT's debt burden by £10 billion by December 2001.

Today's major restructuring announcement comes as it revealed that half-year profits fell from £1.66 billion last year to £1.03 billion. Turnover increased to £14.39 billion from £10.32 billion. ®

Related Stories

BT's strategic announcements.

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
Attack of the clones: Oracle's latest Red Hat Linux lookalike arrives
Oracle's Linux boss says Larry's Linux isn't just for Oracle apps anymore
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.