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

Related articles: 
BT Openreach adds 98 locations to its last mile fiber network
BT's cost-cutting, broadband service drive 3% earnings rise in fiscal Q4
BT hopes to attract more subscribers with 6 month free broadband bundle

Suggested Articles

The personal information of hundreds of thousands of CenturyLink customers was exposed online via an open database that has since been closed.

The number of hyperscale data centers hit a new high-water mark in the third quarter, according to Synergy Research Group.

Comcast Business has extended its broadband and network management capabilities into parts of Canada via a partnership with iTel Networks.