BT revenue drops 3pc due to higher business rates and pension charges

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Profit before tax rose 25 per cent to £660m while adjusted EBITDA fell two per cent to £1.83bn

BT announced today (Feb 2) revenue dropped three per cent to £5.97 billion in Q3 due to higher business rates and pension charges

Analysts predicted a rise in revenue to £6.07 billion for the three months ending December 31.

The telecoms giant places the blame on investment in mobile devices, customer experience, higher business rate charges and pensions.

Profit before tax rose 25 per cent to £660m while adjusted EBITDA fell two per cent to £1.83bn, which is almost in line with analyst predictions.

235,000 monthly mobile customers were added in the quarter reporting a low churn of 1.2 per cent, however average revenue per user is down two per cent to £26.20.

It lost 5,000 television customers during the quarter – last year 52,000 customers joined.

BT Group chief executive Gavin Patterson said: “Our third quarter financial results are broadly in line with our expectations and we remain confident in our outlook for the full year.

“We are delivering against our strategy, capitalising on opportunities and responding to market challenges with a robust set of actions. Looking ahead, we’re confident in the steps we are taking to improve the performance of BT for all our stakeholders.”

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