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19/05/2005
BT quarterly profits soar on 'new wave'
BT Group plc have reported a massive increase in its fourth quarter figures as the company spent less on jobs cuts and demonstrated increased sales performance.
The UK's largest telecommunications company recorded a 2% improvement in turnover, which reached almost £4.9 billion, mainly fuelled by what the company described as "new wave" turnover that more than compensated for a decline in traditional turnover.
In the year turnover sourced from traditional revenue streams was down by 11%, but the new wave profits pushed annual pre-tax profits 20% higher to £557 million.
The performance of broadband internet in particular had helped BT more than offset the drop in profits from traditional plain old telephone systems.
Commenting on the fourth quarter results, Ben Verwaayen, Chief Executive, said: “This has been an excellent quarter to end an exciting year. We have now delivered five consecutive quarters of underlying revenue growth and twelve consecutive quarters of growth in underlying earnings per share. These are great results and we expect to see the overall revenue trends continuing.
“We have more than doubled the number of broadband DSL connections in the year, hit the 5 million target a year early and are increasing broadband speeds by up to four times.
“Our global networked IT services business is building strongly and with purpose. We have successfully completed the acquisitions of Albacom, Infonet and Radianz, extending our global reach still further. Even after excluding the effect of acquisitions, our Global Services’ revenues grew by 10 per cent in the quarter. Our ICT order intake was a record £3.8 billion in the quarter and takes orders for the year to more than £7 billion. This is a profitable business today and we expect it to continue to grow.
“We are delivering value through transforming the business and are confident that our strategy will continue to deliver value in the future.”
The fourth quarter results from BT have helped the Group reduce its net debt burden by £639 million.
(SP)
The UK's largest telecommunications company recorded a 2% improvement in turnover, which reached almost £4.9 billion, mainly fuelled by what the company described as "new wave" turnover that more than compensated for a decline in traditional turnover.
In the year turnover sourced from traditional revenue streams was down by 11%, but the new wave profits pushed annual pre-tax profits 20% higher to £557 million.
The performance of broadband internet in particular had helped BT more than offset the drop in profits from traditional plain old telephone systems.
Commenting on the fourth quarter results, Ben Verwaayen, Chief Executive, said: “This has been an excellent quarter to end an exciting year. We have now delivered five consecutive quarters of underlying revenue growth and twelve consecutive quarters of growth in underlying earnings per share. These are great results and we expect to see the overall revenue trends continuing.
“We have more than doubled the number of broadband DSL connections in the year, hit the 5 million target a year early and are increasing broadband speeds by up to four times.
“Our global networked IT services business is building strongly and with purpose. We have successfully completed the acquisitions of Albacom, Infonet and Radianz, extending our global reach still further. Even after excluding the effect of acquisitions, our Global Services’ revenues grew by 10 per cent in the quarter. Our ICT order intake was a record £3.8 billion in the quarter and takes orders for the year to more than £7 billion. This is a profitable business today and we expect it to continue to grow.
“We are delivering value through transforming the business and are confident that our strategy will continue to deliver value in the future.”
The fourth quarter results from BT have helped the Group reduce its net debt burden by £639 million.
(SP)
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