Feeds

BT unveils first-ever loss

Oh that it should come to this (sniff)

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

BT has announced its first-ever loss of £1.03 billion. The company - once famous for the amount of profit it made per second - has slipped into the red thanks to acquisitions, expensive 3G licences and faltering businesses.

Most significant was a £3 billion goodwill write-off for boosting its stake in German mobile company Viag Interkom after BT boosted its share from a minority 45 per cent to a majority 90 per cent. Then there was the billions it paid for 3G licences throughout Europe. And finally the losses made by Concert - its troubled joint venture with AT&T.

The news that BT has made its first-ever loss was tied in with a new restructure of the giant telco which will see the company split in two and its wireless arm floated off. The company has cancelled its dividend, said it will "continue reviewing" its position in Concert (like it has for the last year) and confirmed its intention to raise £6 billion courtesy of a rights issue.

Turnover for the year was £20.4 billion - up from £18.7 billion last year. Earnings before interest, tax etc was up slightly to £6.5 billion from £6.44 billion last year. However, profit fell from £3.1 billion to £2.1 billion. The goodwill charge for Viag Interkom of £3.2 billion therefore pulled BT into a loss. Earnings per share were minus 27.7p from a positive 31.7p last year.

Sir Christopher Bland said: "It will require determined and rapid action by management to achieve the transformation of BT. We have made a good start, the culture is changing, and I am confident that we can complete the process in the best interests of our shareholders, customers and staff."

By mid-morning BT's share price was six per cent down and still falling. ®

Related Stories

What's in BT's bargain bin?
BT shake-up to save business (touch wood)
< ahref="http://www.theregister.co.uk/content/7/18859.html">'I'm not a quitter and I love my critics' - BT's Bonfield
BT bashed about by City - again, again

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.