BT posts strong broadband growth
Revenues at BT have fallen sharply in the last quarter of 2007, hit by 76m worth of restructuring costs. However the telecoms giant has registered strong international and broadband growth.
Revenues at BT have fallen sharply in the last quarter of 2007, hit by £76m worth of restructuring costs. However the telecoms giant has registered strong international and broadband growth.
Revenues for the quarter ending December 31st were £5.1bn, up a fraction at 0.54% in comparison with last year. But Britain’s biggest fixed-line phone firm saw profits before tax and after exceptional items fall 30% to £447m in the last quarter of 2007.
BT says the restructuring costs are predominantly due to managers leaving and its transformation programme that is focused on reorganising BT towards more broadband and software services.
BT Global services revenue increased 6% during the quarter to £1.9bn, while gross profit climbed 5% to £695m, off the back of strong networked IT services contract orders, £1.3bn in the quarter.
Broadband revenue increased 25% and customer net additions were 177,000. This takes BT’s total broadband customers to 4.3 million and its retail market share of DSL and Local Loop Unbundled (LLU) to 35% in the quarter.
At BT Vision, the telecoms company’s next generation TV service, subscribers more than doubled to 120,000 and now stands at 150,000.
