Feeds

BT Global Services boss falls on sword

Profit warning sparks boardroom coup

Boost IT visibility and business value

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.®

The essential guide to IT transformation

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
Don't call it throttling: Ericsson 'priority' tech gives users their own slice of spectrum
Actually it's a nifty trick - at least you'll pay for what you get
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
Trans-Pacific: Google spaffs cash on FAST undersea packet-flinging
One of 6 backers for new 60 Tbps cable to hook US to Japan
Tech city types developing 'Google Glass for the blind' app
An app and service where other people 'see' for you
UK mobile coverage is BETTER than EVER, networks tell Ofcom
Regulator swallows this line and parrots it back out at us. What are they playing at?
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.