BT's cost cutting helps offset fiscal Q3 revenue decline
BT (NYSE: BT) saw its revenue fall 5 percent to £4.77 billion ($7.55 billion) in fiscal Q3 2011 due to declines in its global services, retail and wholesale divisions, but its ongoing cost cutting effort drove up operating profit by 22 percent to £764 million ($1.2 billion).
Global services revenues declined 4 percent, while retail and wholesale declined 5 percent and 8 percent, respectively.
One particular area where BT did see growth in Q3 was broadband. During the quarter, the service provider added 146,000 new subscribers, representing almost approximately 56 percent of all UK broadband subscriber net additions.
Inside the broadband arena, BT reported that it added 95,000 new Infinity fiber-based broadband customers, ending the quarter with over 400,000 subscribers.
"We have delivered another quarter of growth in profits and cash flow despite the economic headwinds," Chief Executive Ian Livingston said."These are a reasonable set of results. We're seeing further cost reductions, and that's despite very significant investment we're making in the business.
Livingston added that "we are becoming a more efficient and better business, but we've still got more to do."
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