BT Q3 profits fall 37pc from £832m to £526m

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Total revenues at EE in Q3 totalled £1.3 billion, with total subscriber numbers standing at 30.2 million

BT has seen its profits before tax for the three months ending December 31 fall 37 per cent from £832 million to £526 million.

The drop follows the scandal where BT had to write down the value of its Italian branch after overstating profits. Profit before tax for the whole nine months of the financial year stood at £1.9 billion.

The broadband giant’s revenues for Q3 were up by 32 per cent to £6.12 billion, however, following its acquisition of EE at the beginning of last year. Revenues for the financial year so far total more than £17 billion. The company’s global services division generated the highest revenue at £1.39 billion, whilst Openreach drew in £1.28 billion.

BT chief executive Gavin Patterson claimed the increase in revenue was underpinned by ‘record growth’ at EE. The operator’s revenues for the third quarter was £1.3 billion.

He said: “We face a more challenging outlook in the UK public sector and international corporate markets but we’ve seen record growth at EE, strong momentum in Consumer, and our highest ever fibre net connections in Openreach. Customer experience remains a top priority. EE is now answering 100 per cent of its customers’ calls in the UK and Ireland.”

Total mobile numbers were at 30.2 million, with 276,000 contract additions in the quarter. This took contract numbers to 16.7 million. Prepaid figures stood at 7.3 million following the addition of 326,000 customers in this area during Q3.

Commenting about the Italian scandal, Patterson said: “The good progress we’re making across most of the business has unfortunately been overshadowed by the results of our investigation into our Italian operations and our outlook.

“We’ve undertaken extensive investigations into our Italian business, including an independent review by KPMG, and I am deeply disappointed with the unacceptable practices by some that we’ve found.

“This has no place at BT, and it undermines the good work we’re doing elsewhere in the Group. We are committed to ensuring the highest standards across the whole of BT.”

 

 

 

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