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BT: Consumers and cost cutting save the day

Telco adds 88,000 broadband users, sees £4.38bn in sales

Wholesale takes a tumble

In BT Wholesale, the unit hit the hardest in the quarter, revenues fell 15 per cent year-on-year or some £95m to £529m. Operating costs were slashed 13 per cent but operating profit slumped 28 per cent to £70m.

Much of the decline was attributed to a 28 per cent reduction in the traditional calls, lines and circuits biz, including the impact of lower fixed termination rates after Ofcom’s Narrowband Market Review.

Managed Solutions fell 16 per cent, again hit by the loss of the Post Office contract but IP services jumped 61 per cent.

It was again left to the Consumer arm of BT to fly the growth flag in the three months, as sales came in seven per cent higher than a year ago to £10.5bn. Operating costs were broadly flat and operating profit was up 63 per cent to £171m.

Broadband and TV revenue was up 17 per cent “reflecting the growth in our broadband and BT Sport customer bases".

Fibre was up with 203,000 retail fibre broadband additions, taking the customer base to 2.5m. Some 34 per cent of retail punters are on fibre, BT eastimates.

Consumer line losses were 85,000 in the quarter and BT added 88,000 retail broadband customer, 48 per cent of the DSL and fibre broadband market net additions. In all, 38,000 TV customers signed up in Q3.

“Our share was lower than in recent quarters due to strong promotional activity in the market,” BT said.

Group intra-trade was £885 in the quarter. ®

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