BT Reports On Q2

Profit before tax 496 million pounds sterling; Free cash flow was 552 million pounds; Earnings per share 3.7 pence

November 7, 2002

2 Min Read

LONDON, U.K. -- BT today announced a 55 per cent increase in profit before tax in its second quarter compared with the same period last year. It also announced a 54 per cent increase in earnings per share, and a return to the interim dividend list. The results showed that BT is on target to meet or exceed all but one of the key stretching financial targets it set for itself. Even given the difficult market conditions BT managed to increase its revenue by two per cent in the quarter.

The highlights of the second quarter results include

  • Profit before tax up 55 per cent to 496 million pounds sterling;

  • Earnings per share up 54 per cent to 3.7 pence;

  • Interim dividend resumed at 2.25 pence per share;

  • Turnover up two per cent to 4,661 million pounds;

  • More than 450,000 broadband end users;

  • Customer satisfaction well ahead of competition

Commenting on the results, Sir Christopher Bland, Chairman of BT, said: "This is an excellent set of results. The operating performance of the business has been particularly strong in a difficult market. We generated over half a billion pounds in free cash flow in the quarter.

"The recently announced agreement to dispose of our stake in Cegetel will see net debt reduced by a further 2.5 billion pounds on completion.

"These results demonstrate our ability to reduce debt, reward our shareholders and invest for the future."

Ben Verwaayen said: "We continue to make strong progress in achieving our key goals of improving cash flow, earnings per share and customer satisfaction. Free cash flow was 552 million pounds and earnings per share* increased by 54 per cent over last year to 3.7 pence, well ahead of our targets. Customer satisfaction was also well ahead of the competition. "Our revenue growth in the quarter was 2 per cent. Although the three-year revenue target of 6 to 8 per cent compound annual growth is unlikely to be achieved in the present market conditions, we expect total revenue growth for the second half to be in line with current market expectations. Future revenue growth will benefit from our focus on developing new wave initiatives, particularly in broadband and ICT."

British Telecommunications plc (BT)

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