Feeds

BT's new wave drives 'excellent' quarter

Revs up, profit up

  • alert
  • submit to reddit

Maximizing your infrastructure through virtualization

BT appears to be coping with the loss of 100,000 phone punters a month by making giant strides in broadband and other "new wave" areas. The UK telco is weaning itself off its dependency on traditional phone services and instead turning to its "new wave" fix to keep the business moving forward.

The UK's former phone monopoly saw its share of domestic UK phone customers dip from 63 per cent to 62 per cent over the year to March as more and more punters switched to rival providers such as Carphone, Tele2 and Tesco. This exodus, plus increased price competition, led to a fall in revenues from BT's traditional retail phone business from £10.77bn to £9.78bn.

At the same time, turnover for the whole of the BT group rose 1 per cent to £18.62bn as it racked up pre-tax profits of £2.08bn - up four per cent on last year.

Much of this revenue growth was due to the rapidly rising revenues from BT's new wave business such as ICT (Information and Communications Technology) and broadband. New wave turnover grew 32 per cent to £4.47m over the last year driven by strong growth in ICT and broadband, and now accounts for around a quarter of BT's annual revenues.

Over the last three months alone broadband takings increased 61 per cent to £163m compared to last year as BT Retail racked up 1.75m high-speed end users. The total number of wholesale BT broadband lines now stands at more than five million with a record 825,000 DSL connections completed in the quarter.

Chipper chief exec Ben Verwaayen described the last quarter as "excellent", adding: "We have more than doubled the number of broadband DSL connections in the year, hit the five million target a year early and are increasing broadband speeds by up to four times," he said.

By mid morning shares in BT were up 4.35 per cent (8.75p) at 210p. ®

Related stories

BT and Sony offer free music downloads
AOL UK offers phone service
Marconi culls 800 jobs
BT buys Cisco reseller
Marconi mulls bleak future following BT bombshell
BT completes Radianz buy-out

Reducing security risks from open source software

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.