Feeds

BT profits nothing to phone home about

Farewell Ben Verwaayen

Beginner's guide to SSL certificates

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. ®

Security for virtualized datacentres

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
Apple Watch will CONQUER smartwatch world – analysts
After Applelocalypse, other wristputers will get stuck in
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.