BT reports 43pc profit drop after £225m charge over Italian scandal
Total reported revenue for the business is flat, up one per cent to £5.8 billion
Operators
July 28, 2017
Revenues across the entire BT group remained largely flat at £5.8 billion
EE has seen its first quarter revenues for the three months ending June 30 grow by four per cent from £1.24 billion to £1.29 billion.
The latest results for the operator since it merged with parent company BT in February last year were released today (July 28). EE provided the largest growth in revenue across the entire group, whilst EBITDA for the operator grew from £281 million to £335 million.
Mobile customers for both EE and MVNO BT totalled 29.8 million. Contract customers in the quarter grew by 210,000, bringing total numbers in the area to 17 million. Prepay numbers reduced by 385,000 to bring overall subscriptions to 6.5 million. There are 19 million 4G customers overall.
Revenues across the entire BT Group for the same period remained largely flat at £5.8 billion, whilst profit before tax fell by 42 per cent to £418 million. EBITDA declined, however, from £1.7 billion in Q1 2016 to £1.4 billion in Q1 this year. BT’s consumer division saw its revenue increase from £1.1 billion in Q1 last year to £1.2 billion this year. Openreach saw similar growth from £1.25 billion to £1.26 billion.
The latest performance results come amidst structural changes within the company. Both EE and BT Consumer will be merged together. EE CEO Allera will head up the new division following BT Consumer CEO John Petter’s decision to leave the company after 13 years. BT chief strategy officer Sean Williams will also be leaving the company.
BT chief executive Gavin Patterson said: ““BT has delivered an encouraging performance in the first quarter of the year. We’ve made good progress in our key areas of strategic focus: deliver great customer experience, invest for growth, and transform our costs. In particular, I’d highlight the growth achieved by our consumer facing businesses, helped by mobile.
“BT, with Openreach, is well placed to support the roll out of FTTP in the UK, and we’re consulting with Ofcom, Government and other communications providers to build the investment case to achieve this outcome.
“Our new Consumer business will operate our three distinct brands; BT, EE and Plusnet; to leverage our position as the largest and only fully converged player in the market, spanning fixed and mobile networks, consumer products and services as well as content.
“We will continue to simplify and streamline the business and rationalise our costs as demonstrated by our ongoing performance transformation programme. Our businesses are leaders in their core segments and as we drive the business forward I am confident in the outlook for our Company.”