Feeds

BT faces ‘challenging’ times as revenues dip

Pre-tax proft up, though

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

BT is feeling the heat from increased competition and lower pricing, the UK's dominant telco admitted today.

Publishing Q2 results for the three months to the end of September, the company reported that turnover had fallen by two per cent to £4.57 billion.

In particular, revenues in BT's traditional phone business fell six per cent as more and more people opt for rival operators such as Tesco, One.Tel and, more recently, Tele2. Cuts in fixed-to-mobile termination rates, imposed by the regulator Oftel, accounted for more than half of the decline in group turnover.

Despite the fall in revenue, the telco's pre-tax profit was up seven per cent at £529 million. While BT's core business is being squeezed, it reports that turnover in "new wave" areas - which includes broadband - rose 25 per cent to £761 million.

Indeed, the company now has more than 1.5 million ADSL connections, three times the number a year ago. As a result broadband revenue increased to £106 million from £45 million.

BT's chairman, Sir Christopher Bland, said that it "continues to be a challenging year for our traditional business" before adding that its "new wave businesses are delivering strong growth".

BT has also reduced its debt mountain - which at its height stood at £30 billion - by 33 per cent over the last year to £8.8 billion. ®

Internet Security Threat Report 2014

More from The Register

next story
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Virgin Media struck dumb by NATIONWIDE packet loss balls-up
Turning it off and on again fixes glitch 12 HOURS LATER
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
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.
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.