Feeds

BT Global Services boss falls on sword

Profit warning sparks boardroom coup

Beginner's guide to SSL certificates

BT issued a surprise profit warning this morning and saw its share price tumble by almost a fifth as a result.

The telco announces results for the third quarter on 13 November. But it told the Stock Exchange this morning that although revenues had grown in line with expectations, profits have missed targets, especially in BT Global Services.

Global Services grew revenues by 15 per cent but Ebitda is below expectations at £120m. The firm blamed a decline in high-margin UK business and the non-arrival of expected efficiency savings for the shortfall.

The rest of BT - Retail, Wholesale and Openreach all brought in revenue growth on target. Overall the group expects revenues to have grown faster than expected but earnings per share to be slightly below expectations.

BT's newly appointed chief executive, Ian Livingstone, who took over from Ben Verwaayen in the summer, said: "BT is performing in line with or ahead of expectations in all but one of its divisions, so the results in BT Global Services are particularly disappointing. We acknowledge that the performance in this part of the group is unsatisfactory and are committed to taking decisive action to rectify the situation."

The company announced an interim dividend of 5.4p - down slightly on last year.

BT shares were trading at 115p, down 27p or 19 per cent. The FTSE 100 was down 1.3 per cent.

The full statement is here.

The boss of BT Global Services has fallen on his sword after the company announced it had missed profit targets for the division. Francois Barrault quit as chief executive of the division and as a member of BT's board. His place will be taken by chief bean counter, group finance director, Hanif Lalani. Ray Leclercq who is currently CFO at Openreach becomes new chief finance officer. A new group finance director will be announced shortly.

Full RNS statement on board changes is here.®

Intelligent flash storage arrays

More from The Register

next story
TEEN RAMPAGE: Kids in iPhone 6 'Will it bend' YouTube 'prank'
iPhones bent in Norwich? As if the place wasn't weird enough
Consumers agree to give up first-born child for free Wi-Fi – survey
This Herod network's ace – but crap reception in bullrushes
Crouching tiger, FAST ASLEEP dragon: Smugglers can't shift iPhone 6s
China's grey market reports 'sluggish' sales of Apple mobe
Sea-Me-We 5 construction starts
New sub cable to go live 2016
New EU digi-commish struggles with concepts of net neutrality
Oettinger all about the infrastructure – but not big on substance
EE coughs to BROKEN data usage metrics BLUNDER that short-changes customers
Carrier apologises for 'inflated' measurements cockup
Comcast: Help, help, FCC. Netflix and pals are EXTORTIONISTS
The others guys are being mean so therefore ... monopoly all good, yeah?
Surprise: if you work from home you need the Internet
Buffer-rage sends Aussies out to experience road rage
prev story

Whitepapers

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.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.