BT Reports Leap in New Service Revenues

BT Reports Leap in New Service Revenues

November 11, 2004

2 Min Read

LONDON -- SECOND QUARTER HIGHLIGHTS

  • Group turnover up 2 per cent, excluding the impact of mobile termination rate reductions, at £4,602 million. Up 1 per cent including the impact of mobile termination rate reductions

  • New wave turnover of £1,033 million, up 36 per cent

  • Profit before taxation, goodwill amortisation and exceptional items of £549 million, up 4 per cent

  • Earnings per share before goodwill amortisation and exceptional items, up 9 per cent at 4.8 pence

  • Free cash flow before acquisitions, disposals and dividends of £594 million

  • Net debt of £8,267 million, 6 per cent lower than previous year

  • Broadband end users of 3.3 million at September 30, 2004 with a record 607,000 DSL connections in the quarter



HALF YEAR HIGHLIGHTS

  • Group turnover up 1 per cent, excluding the impact of mobile termination rate reductions, at £9,169 million. Turnover flat including the impact of mobile termination rate reductions

  • New wave turnover of £1,969 million, up 34 per cent

  • Profit before taxation, goodwill amortisation and exceptional items of £983 million, down 4 per cent. Up 4 per cent before leaver costs

  • Earnings per share before goodwill amortisation and exceptional items maintained at 8.5 pence. Up 7 per cent at 9.4 pence before leaver costs

  • Interim dividend of 3.9 pence per share, up 22 per cent



Chairman’s statement

Sir Christopher Bland, Chairman, commenting on the half year results said:

“The group is making exciting progress, delivering strong financial results whilst transforming the business. I am very pleased to report that we will be paying an interim dividend of 3.9 pence per share, 22 per cent higher than last year.

“We continue to invest in our business at a rate well above others in Europe. This investment, together with our continuing research and development programmes, are helping BT take a world leading position.”

Chief Executive’s statement

Ben Verwaayen, Chief Executive, commenting on the second quarter results, said:

“The 36 per cent growth of new wave revenues helped us deliver the best underlying revenue growth in almost 3 years. We continue to improve earnings per share, up 9 per cent before goodwill amortisation and exceptional items.

“We are winning business across the globe and responding innovatively to an intense competitive environment, particularly in the UK. Our agreement to acquire Infonet is another step in BT’s transformation into a leading provider of IT and networking services.

“We now have more than 3.3 million broadband DSL customers, with the latest million connections achieved in less than six months, which is a new connection every 15 seconds.

“These results demonstrate our continuing ability to improve earnings whilst building for the future.”

BT Group plc

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