BT reports 6% revenue dip; profits climb

BT Group PLC (NYSE: BT) on Wednesday reported lackluster fiscal first-quarter 2012 financial results in which revenues dipped amid economic uncertainty in Europe.

The London-based company's Global Services business, which provides enterprise IT services, had a 9.2 percent revenue drop in the quarter, compared to the same, year-ago period. The Global Services unit reported a 5.9 percent year-on-year decline in revenues, to £4.48 billion ($6.96 billion), for the three-month period ending June 30.

In a statement, BT Chief Executive Officer Ian Livingston said BT Global Services "was impacted by the tough conditions in Europe and the financial services sector."

Meanwhile, BT's pay-TV business, BT Vision, added 21,000 subscribers, bringing its total customer base to 728,000.

For the quarter, BT reported pre-tax profit of £578 million ($897 million), up 8 percent from a year earlier, but down from £690 million in Q4 2011.

"We have delivered another quarter of profit growth and the 11th consecutive quarter of double-digit earnings per share growth, although our quarterly cash flow was impacted by the timing of working capital movements," Livingston said.

For more:
- see the BT earnings release

Special Report: Wireline in the second quarter of 2012

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