BT has reported “pleasing” fourth quarter results, with a 25% increase in broadband revenue marred by falling subscribers to its core services.
The company reported a 2% increase in overall revenue for the fourth quarter ending March 31. The company’s broadband customer base grew by 1.9 million wholesale customers in comparison to the same period last year. Its overall wholesale revenue declined by 12% to 1.2m.
BT chief executive Ben Verwaayen says: “We have finished the year in style with a strong fourth quarter performance. BT is in great shape with year-on-year growth in revenue, earnings per share, earnings before interest, taxes, depreciation and amortisation, free cashflow and dividends per share.”
Verwaayen, who steps down in June, has cut jobs and boosted operating profit at BT’s network and technology consulting unit and retail division. Carphone Warehouse and BSkyB, who previously rented broadband from the company’s wholesale unit, have started to “unbundle” lines so they no longer need to use BT.
BT chairman Sir Michael Rake says he is “confident” the company’s strategy will deliver an increase in dividends per share for the rest of 2008.