BT sees revenues grow but profits remain flat

BT sees revenues grow but profits remain flat

BT boss Ben Verwaayen bowed out on a relative high after posting fourth quarter results exceeding forecasts.

BT’s Q4 revenues grew 2% to £5.4bn, slightly better than expected, with revenues for the whole year up 2% to just over £20bn.

Fourth quarter profits were up 3% at £714m but for the year as whole profits were £1.97bn, down from £2.48bn in the previous year, because of more than £400m worth of restructuring charges.

Verwaayen ends his six-year tenure as BT chief executive next month having been credited with turning the companies fortunes around by developing the broadband business and a move into the IT market.

New wave revenues – from broadband and corporate IT contracts – were up 9% at £2.3bn and now account for over 40% of all group revenues.

In broadband 499,000 new customers were connected to the internet using BT's lines over the first three months of 2008.

Of those total connections, 150,000 were new customers to BT's own internet service provider BT Retail giving it a 30% share of new customers.

BT Retail remains the UK's number one retail broadband provider with a customer base of 4.4 million. BT's TV over the internet service BT Vision, meanwhile, is now being used by more than 214,000 customers.

Written by Mobile Today
Mobile Today


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