BT Group has reported a continued decline in quarterly
profits with an 82% drop in fourth-quarter profit, although it said
it has stemmed its revenue decline of the previous three
quarters.
BT said it had quarterly revenue of £4.787bn, which was a slight
improvement over the same quarter last year when it reported
revenue of £4.778bn.
For the full year, BT reported revenue of £18.5bn, compared with
£18.7bn fo 2003. BT attributed the decline in its yearly figures in
part to the UK government's decision to enforce a reduction in
mobile termination rates.
Continued quarterly losses in BT's fixed-line business were
offset by 38% growth for the quarter in "new wave" revenue, a term
the company uses to cover newer technologies such as broadband,
mobility and managed services.
Revenue in that sector was £1.1bn, accounting for 23% of BT's
total revenue, compared with 16% in the fourth quarter of last
year. In particular, BT benefited from its new information
technology infrastructure contracts with the NHS, which generated
revenue of £77m in the fourth quarter.
For the year, its new wave technologies, pushed mainly by gains
in broadband and information and communications technology products
and services, grew by 30% to £3.39bn, representing 18% of BT's
yearly revenue for 2004, compared with 14% in 2003.
BT said it experienced a 162% increase in its installed base of
wholesale broadband lines to 2.45 million for the year. That growth
resulted in a 112% jump in broadband revenue to £165m for the
quarter and an 107% increase in broadband revenue for the year to
£491m.
The company was able to drive down its net debt by 12% from last
year to £8.43bn.
Laura Rohde writes for IDG News
Service