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BT's Q3 revenue at £4,359 mn, down 9%

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V&D Bureau
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British Telecom 3rd quarter revenue stood at £4,359 million which was down by 9 percent with the impact of certain regulatory decisions which have been treated as a specific item.

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These specific items resulted in a net charge after tax of £38 million for Q3 2012 as the charges of £151 million and £36 million were recognized against revenue and EBITDA, respectively, following Ofcom's determinations on historic Ethernet pricing.

Excluding specific items, revenue was down 6 percent at £4,510 mn. This decline includes a £66 mn reduction in transit revenue (including mobile termination rate reductions of £37 mn), a £50 mn negative impact from foreign exchange movements, and an £8 mn impact from disposals.

A profit of £9 million was recognized on the disposal of our remaining 9.1 percent interest in Tech Mahindra. The company's total investment in Tech Mahindra has in aggregate generated returns of around £350 million. Net interest income on pensions was £8 million for the same quarter.

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Adjusted EPS was 6.6p, up 8 percent, reflecting the growth in profit before tax. Reported EPS (which includes specific items) was 6.2 percent, down 2 percent. These are based on a weighted average number of shares in issue of 7,865 million.

At 31 December 2012 the group had cash and current investment balances of £2.2 billion and available facilities of £1.5bn providing us with a strong liquidity and funding position. In January 2013 £1.4 billion of term debt matured and was funded from these cash and investment balances.

According to Ian Livingston, cief executive, BT Group "Our key measure of the underlying revenue trend, underlying revenue excluding transit, was down 3.1 percent, an improvement compared with recent quarters reflecting better performances from BT Global Services and BT Wholesale."

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He further added that our underlying revenue trend continues to be impacted by the tough conditions in Europe and the financial services sector, regulatory price reductions and lower revenue from calls and lines.

Total broadband market net additions grew 7 percent to 281,000 of which BT added 122,000 retail broadband customers, a 44% share.

On 31 December 2012 the group had cash and current investment balances of £2.2bn and available facilities of £1.5bn providing us with a strong liquidity and funding position. In January 2013 £1.4bn of term debt matured and was funded from these cash and investment balances.

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