Feeds

BT profits hit by Global Services

Steady performance though

Combat fraud and increase customer satisfaction

BT saw its profits for the first quarter ended 30 June 2009 hit by continued poor performance at its Global Services division.

Group revenues grew by one per cent to £5.24bn, although this was actually a three per cent fall when currency movements are factored in. EBITDA was £1.3bn and profit before tax was £272m, compared to £497m in the same quarter of 2009.

BT's troubled Global Services division grew revenue four per cent to £2.08bn, but fell by the same amount when currency moves are included. The division made a loss of £124m in the quarter. BT said it had successfully reduced capital expenditure at Global Services by 47 per cent.

Cost cutting across the group continues - BT said it had cut £357m from operating costs compared to last year.

BT's retail business added 78,000 customers, leaving total customers at 4.8m. It claims 35 per cent of the DSL and LLU market.

The telco also warned that its net pension position on 30 June 2009 was a deficit of £5.8bn compared to just £2.9bn on 31 March 2009. BT blamed this on increasing inflation, which it puts at 3.5 per cent, and a reduction in the discounting rate which wiped out gains the fund made.

BT's full statement is here.

BT's predictions for the year are unchanged - it expects a 4 to 5 per cent fall in revenue. Results for the second quarter are expected 12 November 2009.

The stock market seemed impressed with the results - BT shares are up over seven per cent at the time of writing. ®

High performance access to file storage

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
AT&T dangles gigabit broadband plans over 100 US cities
So soon after a mulled Google Fiber expansion, fancy that
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
Google looks to LTE and Wi-Fi to help it lube YouTube tubes
Bandwidth hogger needs tube embiggenment if it's to succeed
Turnbull gave NBN Co NO RULES to plan blackspot upgrades
NBN Co faces huge future Telstra bills and reduces fibre footprint
NBN Co plans fibre-to-the-basement blitz to beat cherry-pickers
Heading off at the pass operation given same priority as blackspot fixing
NBN Co in 'broadband kit we tested worked' STUNNER
Announcement of VDSL trial is not proof of concept for fibre-to-the-node
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.