BTopenwound still bleeds
More pressure needed on the tourniquet
BTopenworld continues to haemorrhage money – although at a reduced rate – in spite of increasing turnover.
BT’s mass-market ISP business – cruelly referred to as BTopenwound by some for its ability to lose so much cash – reported that turnover for the three months to December 31 increased to £59 million from £38 million during the same period last year.
Its narrowband business generated revenues of £31 million for the quarter – much higher than its broadband business, which pulled in £12 million.
BTopenworld's virtual ISP business made up much of the remaining £16 million of revenue.
Losses before interest etc (EBITDA) fell 54 per cent on last year from £50 million to £23 million.
BTopenworld claims it is continuing to review its products and services in a bid to steer the business towards profitability.
It also claims it has improved its customer service.
Elsewhere, BT reported increased Q3 turnover for the whole group from 4.37 billion to £4.66 billion.
Pre-tax profit fell to £381 million from £483 over the same period.
Ben Verwaayen, BT Group's new chief exec said that his primary objectives are to "enhance BT customers' satisfaction and to grow BT's business".
He also confirmed plans today to make broadband a key priority and to cut wholesale DSL costs.
By mid afternoon shares in BT were up 17.25p (7.6 per cent)at 244.25p ®