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.
By submitting your personal information, you agree that TechTarget and its partners may contact you regarding relevant content, products and special offers.
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