Feeds

Fibre-gobbling punters help BT deposit solid profit

Cuts also counter revenue dip in Q3

Choosing a cloud hosting partner with confidence

BT reported this morning that its sales had fallen 5 per cent for the three months ended 31 December, however earnings and cash generation remained steady, the company added.

The national telco's third quarter revenue stood at £4.77bn, while adjusted pre-tax profit for the period was £628m - up 18 per cent compared with a year earlier.

Sales in all but one division of BT's business fell in the quarter. The company's Openreach wing was the only star of the show, with a 5 per cent sales climb to £1.3bn over the same period in 2010 when it pulled in revenue of £1.24bn.

Free cash flow in Q3 climbed £65m to £634m. BT, which has undergone a series of cost cuts, recorded adjusted earnings per share of 6.1 pence, an increase of 13 per cent.

Demand for broadband has once again been brisk – as was the case during the company's second quarter – however it still declined on 2010's Q3 figures.

During BT's most recent quarter the company attracted 146,000 new customers to its retail broadband service, compared with its haul of 188,000 new punters for the same period a year earlier.

Despite that decline, BT said its total market share of all net additions in the UK had grown 3 per cent to 56 per cent.

“We have delivered another quarter of growth in profits and cash flow despite the economic headwinds," said BT boss Ian Livingston.

He added: “In the UK, our fibre roll-out has accelerated bringing super-fast broadband within reach of over 7 million homes and businesses and we remain the number one broadband retailer with over 6 million customers. Our fixed-line base has now grown for the last five quarters and our active consumer line loss is at its lowest for five years."

Livingston said BT was on track to achieve the firm's 2013 earnings before interest, taxes, depreciation and amortisation (EBITDA) target of above £6bn a year early. BT expects to deliver free cash flow of around £2.4bn in 2012, he added.

Less cheeringly, the company's pension deficit grew during the quarter to £4.1bn. ®

Beginner's guide to SSL certificates

More from The Register

next story
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
BT said to have pulled patent-infringing boxes from DSL network
Take your license demand and stick it in your ASSIA
Right to be forgotten should apply to Google.com too: EU
And hey - no need to tell the website you've de-listed. That'll make it easier ...
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
prev story

Whitepapers

Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
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.
Simplify SSL certificate management across the enterprise
Simple steps to take control of SSL across the enterprise, and recommendations for a management platform for full visibility and single-point of control for these Certificates.