Feeds

BT profits crash

Global Services loses half a billion

Maximizing your infrastructure through virtualization

BT's pre-tax profit fell 81 per cent compared to the third quarter of last year.

In the three months ended 31 December 2008 the telco made £113m in profit, compared to £601m in the last three months of 2007.

Revenue was £5,437m, up five per cent from £5,154m the year before. BT is writing off £336m as a result of contract reviews at BT Global Services, announced in January.. BT shares are down about five per cent at the time of writing.

BT promised quick action to fix the problems at Global Services - chief executive Ian Livingstone said the rest of the group managed the best profit growth for five years but this was eaten by Global Services loss of £501m.

BT Wholesale brought in revenues of £1,183m, down two per cent. Retail made £2,134m, down 0.6 per cent on last year while Global Services made £2,253m up 15 per cent. But this 15 per cent growth was due to a nine per cent improvement in currency rates and six per cent from acquisitions. UK revenues fell three per cent but was offset by 40 per cent growth elsewhere.

Openreach made revenues of £1,329m, up 0.8 per cent.

BT had 13.6m wholesale broadband connections on 31 December 2008, including 5.5m LLU lines. There were 296,000 net additions during the quarter. BT's retail arm claimed 4.7m customers - a 34 per cent market share.

Full release here.

BT has net debt of £11,060m, up from £10,175m on 31 December 2007. ®

The Essential Guide to IT Transformation

More from The Register

next story
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
Orange spent weekend spamming customers with TXTs
Zero, not infinity, is the Magic Number customers want
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
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.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.