BT buoyed by 'new wave' bonanza

Telecoms giant's results boosted by broadband and networked IT services

BT’s latest results show the carrier is continuing to successfully offset tumbling voice revenues with ‘new-wave’ business such as broadband.

The telecoms titan posted a turnover of £5.29bn for its fiscal fourth quarter to 31 March, up three per cent on an annual comparison. For the full year, BT generated a profit before tax and specific items of £2.5bn on revenues up four per cent to £20.2bn.

But the top-line figures only told half the story as new wave revenues - made up mainly of broadband and networked IT services - boomed 14 per cent year-on-year, contributing 40 per cent towards total sales.

At the same time, revenues from BT’s traditional business fell three per cent.

By customer type, BT had the most joy among major corporate accounts, where revenues increased 5 per cent. Sales drawn from SMEs were flat, while its consumer sales fell back 1 per cent.

Ben Verwaayen, chief executive at BT, claimed the carrier had finished the year with a good all-round performance.

“The figures show BT in great shape - revenue, EBITDA, earnings per share and free cash flow are all growing and new wave businesses now generate 40 per cent of our revenues,” he said.

“I am particularly pleased that BT is now the UK’s number one retail broadband provider. BT Global Services had an excellent quarter securing orders worth £3.4 billion and winning more than 200 new customers.”

Sir Christopher Bland, chairman of BT, said: “BT has come a long way in the past five years. This is a very strong set of results which demonstrates how much has been achieved.”