U.S. News

BT Core Earnings Rise in Line With Forecasts


Britain's BT Group posted a 3% increase in first-quarter core earnings on Thursday, in line with expectations, on revenues of 5.03 billion pounds ($10.36 billion).

The U.K.'s dominant fixed-line telecoms provider also posted good broadband figures, with its retail unit accounting for 38% of net DSL broadband additions during the quarter, compared to 32 % in the last quarter and 30% a year ago.

With 459,000 broadband customers, BT's 38% share gave it 175,000 new broadband customers for the BT Retail unit in what it said was seasonally the slowest quarter of the year.

It posted underlying earnings before interest, tax, depreciation and amortisation (EBITDA) before specific items of 1.43 billion pounds for the three months to end June.

The figure compared to an EBITDA of 1.39 billion pounds for he same period a year ago and analyst forecasts of 1.42 billion pounds, according to Reuters Estimates.

BT's revenue rose 3 %, in line with analyst forecasts, with its so called new wave revenues from broadband and corporate networked IT services rising 11% to 1.82 billion pounds.

Margins at its Global Services unit were 10.6%, with EBITDA before staff leaver costs of 230 million pounds and revenue of 2.26 billion pounds.

"Our performance underpins our confidence that we can continue to grow revenue, EBITDA before specific items and leaver costs, earnings per share before specific items and leaver costs, and dividends for the year," it said.

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