Feeds

BT Retail talks down costs, talks up revenues

Danon takes us from Sumo to Samurai

  • alert
  • submit to reddit

3 Big data security analytics techniques

BT Retail CEO Pierre Danon today outlined his plans to cut massive costs from the company's bottom line, defending its core revenues and delivering at least three per cent annual revenue growth over the next three years.

BT Retail aims to grow revenues in two areas; extending existing business through new initiatives - bringing in £825 million; and delivering a brand extension strategy (encompassing entertainment, digital business and CRM) bringing in £700 million over three years.

The new initiatives see the company paying more attention to mobile solutions, wireless LANs, conferencing kit and the like. Most initiatives are already in place, but are expected to grow strongly, fuelling revenue growth beyond the company's core business of voice and Internet access. (Part of this was seen in October, when it tied up with a clutch of IT heavyweights including Cisco, Dell and Microsoft.)

Cost cuts

In June, Danon first told the market of his plan to weed out £850 million in operating costs. This met with a cool reception at the time. He said at then that he would deliver £240 million in savings this year and a further £610 million at some unspecified point in the future.

The £240 million for this year has now swelled to £268 million and next year's target is set at £239 million (for now), while the overall figure is pegged at £650 million.

This year's figures has been achieved in a variety of ways: reducing cost of failure (£43 million); optimising transaction economics (£30 million); and a variety of operational improvements (£195 million).

Part of the three-year plan includes 13,000 job cuts (about 19 per cent of the full workforce). 8,000 people have already been removed, with the remaining 5,000 to be removed by March 2003.

This will transform the company from a lumbering Sumo wrestler to an aggressive Samurai, in Danon's words. ®

Related Stories

BT targets SMEs with new services
BT retail chief 'fiercely opposed' to sale of local loop
New improved BT washes whiter than white
BT Retail saves £850 million

Combat fraud and increase customer satisfaction

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
Ex–Apple CEO John Sculley: Ousting Steve Jobs 'was a mistake'
Twenty-nine years later, post-Pepsi exec has flat-forehead moment
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.