Financial News

  • 1 February 2014, 5:43

BT: First Group Revenue Growth Since 2009

BT has posted its first quarterly growth in revenue since 2009, bolstered by an increased retail customer base and network IT.

The company reported a third quarter revenue rise of 2%, to 4.6bn.

Total Q3 operating profit was up 4% to 867m, driven by an increase in its network Global Services Division, which delivers IT to business customers.

Its share price was up just over 2% in early trades. Here is the latest share price.

BT Retail, its consumer-facing department, saw a rise of 3% in revenue but its operating cost rose by 8%.

As a result, the department saw an operating profit drop of 6%.

The company has waded into the top-flight football broadcasting market in recent months.

The operating profit decline was largely the result of investment in broadcasting rights and infrastructure costs, which were similarly reflected in BSkyB's results on Thursday.

BSkyB, the parent company of Sky News, reported adjusted half-year revenues up 7.6% at 3.751bn.

BT Wholesale also saw a year-on-year profit drop, of 3%, to 89m.

Chief executive Gavin Patterson said: "This is an encouraging set of results, with profit before tax up 8%, earnings per share up 12% and growth in revenue.

"Outside the UK our businesses in the high-growth regions of the world again delivered double-digit revenue growth."

But the company's total free-cash flow reduced by 31% in the three months to December 31.

The firm, which was privatised in 1984, also saw its pension pot shortfall continue to climb.

The pension deficit increased 9% in the quarter to 7.3bn, with net interest charge on the shortfall up 117% to 59m.

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