BT revenues flatten as fibre now reaches 20 million homes

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Operator grabs 64 per cent of new UK broadband customer in second quarter of the year

BT posted revenues of £4.35 billion for the three months ending June 30, a two per cent fall from the same reporting period in 2013.

Adjusted EBITDA held steady at £1.43 billion, a fall for just £5 million from 2013, while pre-tax profits grew by 7 per cent to £638 million (2013: £595 million). Operating profit was also up 5 per cent at £783 million.

Its consumer and business revenues recorded falls of ten and three per cent, at £1.05 and £762 million respectively. EBITDA grew was slightly up at both divisions at £238 million and £240 million.

Openreach, the national network which administers its nationwide television network on behalf of other telcos, posted identical revenues to 2013 at £1.25 billion. EBITDA at the division was up three per cent at £624 million.

The firm also reduced its net debt by around £1 billion to its current level of just over £7 billion.

BT chief executive Gavin Patterson used the results to announce that BT’s fibre broadband network now reaches 20 million homes and is increasing that number by 70,000 every week.

It now has three million homes and businesses connected to its broadband network, 2.3 million of them consumer lines. It claimed it grabbed 64 per cent (104,000) of the 163000 additional UK premises which signed up for fibre broadband over the period.

“BT’s latest results underline the phenomenal growth in broadband and especially demand for fibre and BT is the undisputed leader in the UK in this area,” said CCS Insight director apps and media paolo Pescatore. “The company’s net growth within the broadband business adds are more than twice those of BSkyB for the same quarter.

“As one of the few business units to post an increase in revenue year on year, BT Consumer is without doubt the rising star within the company. With further growth in fibre broadband, its second year of BT Sport and most importantly a return to the consumer mobile market the company has made some big long term bets and as a result has made itself relevant again.”

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