'New wave' business keeps BT in buoyant mood
Telco reduces debt and increases profit
BT has reduced its debt over the past six months and increased profit, although its turnover remains flat.
The telecoms giant released its second-quarter and half-year results ended 30 September. These showed a one per cent increase in turnover for the quarter to £4.6m. Pre-tax profit for the quarter stood at £549m, an increase of four per cent. Half-year turnover was £9.1m with profit reaching £983m, a decrease of four per cent.
BT was keen to flag up its 'new wave' business, generated from IT solutions, broadband, mobility and managed services. For the quarter this part of the business increased by 36 per cent to £1m, with the combined half-year total standing at £1.9m.
The company also said its net debt had fallen by six per cent to £8.2m, and the number of broadband customers had reached 3.3 million, with 607,000 Digital Subscriber Line connections in the quarter.
Ben Verwaayen, chief executive of BT, said in a statement: "The 36 per cent growth of new-wave revenues helped us deliver the best underlying revenue growth in almost three years. We are winning business worldwide."
Phil Codling, senior analyst at Ovum Holway, said software and IT services are increasingly important for BT.
"A lot of solutions business is very network focused, and we expect BT to bolster its software and services growth engine with smaller acquisitions," he said.