BT Wholesale has announced a 9% drop in revenues, blaming the loss of its contract with the Post Office to provide...
its broadband and phone services.
However, the last customers only migrated from BT’s network in the most recent quarter, which the firm said led to a 4% decrease in revenues from its managed solutions department.
Overall, BT Wholesale lost £56m in revenues over the third quarter and reported a 3% drop in profits.
However, the rest of its Q3 results showed positive numbers for the company.
Overall revenues grew by 2% to just shy of £4.6bn and pre-tax profits of £617m. BT Retail saw the biggest rise in revenue – up 4% to over £1.8bn – thanks in part to the increasing number of subscribers to BT Sport, which has now reached 2.5 million.
BT Openreach saw revenues decline 1%, but it was subjected to a charge of £151m from Ofcom related to changes in regulations around local loop unbundling. However, it signed up 252,000 new fibre and copper customers over the three months, meaning it now serves over 18 million premises.
"This is an encouraging set of results, with profit before tax up 8%, earnings per share up 12% and growth in revenue,” said Gavin Patterson, CEO of BT. "Outside the UK our businesses in the high-growth regions of the world again delivered double-digit revenue growth.
"The momentum on our cost transformation has enabled us to raise our EBITDA outlook for the year. It is important that we keep up the progress we are making across the group whilst continuing to focus on improving the service we provide to our customers.”