Feeds

Redundancy costs dent BT profits

But the cutbacks are working

  • alert
  • submit to reddit

Internet Security Threat Report 2014

BT's results for its second quarter - ended 30 September 2009 - are not as bad as expected.

The company's aggressive cutting of jobs and costs is working and it was hoping to hit £1bn for the year, having already cut £900m from annual spending. It expects to make free cash flow of £1.6bn compared to previous expectations of £1bn

Revenue for the three months is £5,122m, down three per cent on last year, or six per cent down including currency movements. Operating profit was £550m, compared to £648m last year. Ebitda was £1,436m, up two per cent on last year's figure. Group operating costs were down three per cent to £4,559m and BT spent £21m on redundancy deals.

Chief executive Ian Livingstone said it had been a quarter of progress, but there was still work to do.

BT Global Services made a loss of £96m on sales of £2,024m, down three per cent on the same three months of 2008. Costs at the division were down eight per cent.

BT Retail brought in £2,062m in sales and made an operating profit of £356m.

The Wholesale business made £1,125m compared to £1,168m last year and an operating profit of £158m.

Revenues at Openreach are divided between cash from other divisions and money brought in from outside the firm. External revenue was £299m, compared to £242m last year, while revenue from other BT divisions was £986m compared to £1,061 last year.

The company is raising its dividend for the year by five per cent and is paying an interim divi of 2.3p.

The firm's bottom line had a large hole blown in it last time by BT Global Services, which made a loss of £1.5bn on sales of £2.1bn. The division's boss, Francois Barrault, took home a £2.85m severance package. Some 15,000 other people lost their jobs at BT this year, and the same number will go next year, presumably with slightly less cash in their pockets.

Full numbers here. ®

Providing a secure and efficient Helpdesk

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.