LONDON--BT Group PLC (BT) Thursday recorded a fall in quarterly
earnings, hit by restructuring costs and lower revenue from
business and wholesale services.
The U.K. telecom group's net profit in its second quarter, ended
Sept. 30, fell to 446 million pounds ($713 million) from GBP613
million in the same period a year earlier.
BT's closely watched earnings before interest, taxes,
depreciation and amortization, or Ebitda, and other exceptionals,
rose 1% year-on-year to GBP1.45 billion.
Revenue in the second quarter was down 2% year-on-year on an
adjusted basis at GBP4.38 billion. The figure was hit by currency
movements, lower transit revenue and disposals, the group said.
Revenue from global services--BT's largest division, which
supplies information technology to large multinational companies,
organizations and governments worldwide--fell 5%. Wholesale revenue
fell 15%.
Still, consumer revenue rose 7% as customers took up its
high-speed fiber broadband services.
"Our consumer business continues to perform," said Chief
Executive Officer Gavin Patterson.
The telecom incumbent battles with rivals such as British Sky
Broadcasting Group PLC (BSY.LN), Liberty Global PLC's (LBTYA)
Virgin Media and TalkTalk Telecom Group PLC (TALK.LN) for
subscribers in the U.K.'s competitive market for so-called
triple-play services of fixed telephony, broadband and television.
To attract broadband users, BT has spent billions of dollars on
premium sports content.
It said the outlook for the year is unchanged.
The group recommended an interim dividend of 3.9 pence, up
15%.
BT shares closed Wednesday at 375.5 pence, valuing the company
at GBP30.58 billion.
Write to Simon Zekaria at simon.zekaria@wsj.com
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