BT has posted another poor set of results, reporting
flat pre-tax profits for the year and a tiny increase in
sales.
Sales crept up by 2% to £20.7bn and pre-tax profits were £2.5bn
year-on-year.
Despite the poor performance, BT is increasing its share
dividend by 5%.
Michael Rake, BT chairman, said, "I am pleased to report that we
are recommending a full-year dividend of 15.8 pence per share, up
5% from last year, reflecting the group's strong performance and
the board's continued confidence in the future of the
business."
BT's faltering performance as far as the City is concerned saw
the decision of CEO, Ben Verwaayen, to leave the company, and he is
officially going at the end of the month.
Rake said, "Ben has been an exceptional CEO who has transformed
the business through his vision and determination. Under his
leadership, BT has developed a strategy that has delivered
consistent profitable growth and laid strong foundations for the
future."
He is being replaced as CEO by Ian Livingston, currently head of
BT Retail.
Emphasising BT's priority of keeping its shareholders happy,
Rake said, "I am confident that we have the right strategy and
people in place to continue to deliver value for our shareholders
and expect to increase dividends per share in 2008/09."
Comms regulator
Ofcom recently said it would be tightening up the penalties BT
would have to pay to rivals suffering from poor service in the
wholesale broadband market.