Feeds

Redundancy costs dent BT profits

But the cutbacks are working

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

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. ®

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.