Feeds

BT shares droop as sales go limp at hard-up Europe

Wholesale wing also hit by rules on fleecing 'regulatory price cuts' in Q1

Top three mobile application threats

BT revenues fell some 6 per cent in the national telco's first quarter as the company coughed to "tough conditions" in the financial sector as well as in Europe hampering its global services division.

It's wholesale wing also suffered an 8 per cent drop in sales falling below the £1bn mark to £923m, while Openreach revenues were flat at £1.26bn.

Total Q1 sales reached £4.48bn in BT's three months ended 30 June compared with £4.76bn during the same period a year earlier.

It reported adjusted pre-tax profit of £578m for the quarter, up eight per cent, while earnings per share rose 10 per cent from 5.2 pence to 5.7 pence.

The company's earnings before interest, taxes, depreciation, amortisation were up 2 per cent at BT at £1.46bn for the quarter.

BT's chief Ian Livingston claimed "good performances" in the firm's wholesale division, despite the decline in sales during the quarter.

He offered this canned statement to the City this morning:

Our financial performance allows us to keep investing for the future. Our engineers are rolling out fibre at pace, bringing fibre broadband to over 2 million more homes and businesses in the quarter and it’s now available to over 11 million premises.

Our investment plans are creating around 2,000 jobs in 2012 by recruiting engineers to support our fibre plans and opening four new UK call centres. We continue to make good progress with our investments in the faster growing economies.

Drilling down into the reasons behind BT's flagging revenue during the quarter, the company, in part, blamed "the impact of regulatory price reductions and lower revenue from calls and lines" for the 6 per cent sales fall.

It claimed that new charge controls imposed on BT by telecoms watchdog Ofcom would continue to have a "negative impact of around £100m−£200m on group external revenue in 2013 and a similar year on year impact in 2014."

On retail, BT saw a dramatic fall in the number of broadband customers it added during Q1, having netted 85,000 subscribers to the service compared with 141,000 new sign-ups during the same period in 2011.

However, the company came up smiling with its faster broadband product, Infinity, having attracted 150,000 new punters to the service during the three months to the end of June this year.

Shares in BT are currently trading down 4.42 per cent at 207.80p, following the company's less-than-pretty Q1 results. ®

Top three mobile application threats

More from The Register

next story
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
Broadband Secretary of SHEEP sensationally quits Cabinet
Maria Miller finally resigns over expenses row
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
EE dismisses DATA-BURNING glitch with Orange Mail app
Bug quietly slurps PAYG credit - yet EE denies it exists
Like Google, Comcast might roll its own mobile voice network
Says anything's possible if regulators approve merger with Time Warner
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
Facebook splats in-app chat, whacks brats into crack yakety-yak app
Jibber-jabbering addicts turfed out just as Zuck warned
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications 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.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.