Feeds

BT Global Services boss falls on sword

Profit warning sparks boardroom coup

Providing a secure and efficient Helpdesk

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.®

New hybrid storage solutions

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
Turnbull: NBN won't turn your town into Silicon Valley
'People have been brainwashed to believe that their world will be changed forever if they get FTTP'
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
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
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.