Feeds

BT Retail talks down costs, talks up revenues

Danon takes us from Sumo to Samurai

  • alert
  • submit to reddit

Maximizing your infrastructure through virtualization

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

The Power of One Infographic

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
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.