BT fourth quarter results show 9% profit growth to £495m


BT fourth quarter results show 9% profit growth to £495m

Warwick Ashford

BT has increased its full-year dividend by 7% and reported market-beating fourth-quarter results, saying it expects to continue to grow profit and free cash flow.

Profit for the quarter was up 97% to £495m compared with the same period the year before, but revenue fell 6% to £5.06bn.

"We expect to continue to grow our profits and free cash flow whilst investing to return BT to growth. These results show we are making progress, but we are well aware there remains a lot more to do," said Ian Livingston, chief executive at BT.

For quarterly revenues, the best performing division was BT Openreach, with turnover of £1.3bn, a 2% increase compared with the year before.

"We have consolidated our position as the leading provider of broadband in the UK with our highest quarterly share of DSL broadband net additions for eight years," said Ian Livingston.

Openreach saw growth in its copper line base in the year, reversing historic trends. BT's roll-out of super-fast broadband was one of the most rapid in the world, he said.

BT claims to be rolling out broadband to an average of 80,000 additional premises each week. BT said it has plans to double the speed of its fibre-to-the-cabinet service in 2012.

BT Global Services revenue was down 9% compared with the year before at £2.08bn. However, Livingston said the division's order intake was up 10% at £7.3bn.

"It has turned cash flow positive a year ahead of plan," he said.

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