BT reports 2% rise in revenues
Telecoms provider BT has reported a 2 per cent rise in revenue to £4,354m in the quarter to 30 June, with underlying revenue (excluding transit) rising by 0.5 per cent.
Bosses have left their outlook unchanged despite earnings before interest, taxes, depreciation, and amortization being flat over the period.
Nevertheless profit before tax was up 7 per cent to reach £638m and earnings per share rose 10 per cent to reach 6.5p.
Commenting on the results Paolo Pescatore, director, apps & media, CCS Insight, said: “BT’s latest results underline the phenomenal growth in broadband and especially demand for fibre and BT is the undisputed leader in the UK in this area. The company’s net growth within the broadband business adds are more than twice those of BSkyB for the same quarter. We feel its TV numbers are disappointing and BT faces some challenges as the company continues the migration towards the new YouView platform”
“As one of the few business units to post an increase in revenue year on year, BT Consumer is without doubt the rising star within the company. With further growth in fibre broadband, its second year of BT Sport and most importantly a return to the consumer mobile market the company has made some big long term bets and as a result has made itself relevant again.”
“BT is very well placed to continue this success given its existing assets such as fibre and an extensive Wi-Fi network. There is undoubtedly a good vibe at BT and lots of excitement. Now crucially the company needs to keep on delivering. Overall BT has had a good start to its new financial year and it promises to be an exciting one.”
BT chief executive Gavin Patterson said: “We have made a good start to the year. We have delivered growth in underlying revenue excluding transit and in profit before tax, and free cash flow was strong."