Feeds

BT profits nothing to phone home about

Farewell Ben Verwaayen

Boost IT visibility and business value

BT failed to increase profits this year, although turnover was up very slightly in the fourth quarter ended 31 March.

For the full year BT turned over £20.7bn, a two per cent increase on 2007. But profit before taxation and specific items was £2.5bn - no improvement on last year. BT did raise its EBITDA some three per cent to £5.8bn. Earnings per share grew five per cent to 23.9 pence and BT will pay a dividend for the year of 15.8 pence per share, also up five per cent.

New wave revenue - from broadband and IT services - grew nine per cent to £8,043m and traditional fixed line revenues fell by one per cent.

Restructuring and redundancy payments cost BT £110m in the year.

The company also said it was changing the way it will introduce its next generation network 21CN. It was originally seen as a mass migration of customers which would later deliver new services, but BT now expects to provide new services from the outset. It said the programme had been expanded to focus more on software-driven services and extra demand for enterprise customers.

Later this year BT will introduce an "innovation platform" so that the telco and outside developers can develop new applications and services for the network.

BT Wholesale saw revenues for the year shrink 12 per cent to £1.18bn. It blamed this loss on a £97m decline in low margin transit and premium rate services revenues and a £54m dip in broadband revenues caused by price cuts. The telco expects more ISPs to connect directly so low margin transit revenues will continue to fall.

BT shares were up very slightly - half a per cent - this morning but are down 28 per cent on the year.

Chairman Sir Michael Rake credited outgoing CEO Ben Verwaayen with transforming BT's business. He will be replaced by current retail chief Ian Livingstone.

BT remains confident looking forward and expects to increase dividends in 2008/2009. ®

Seven Steps to Software Security

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

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.
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.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.