BT’s Profit Increases whilst we the Consumer Pay

BT’s half-year results showed a revenue increase of three per cent to £10.1bn.

The telecoms provider showed growth in so-called “new wave” revenue generated from networked IT services and broadband.

New wave sales were 10 per cent higher than last year at £1.9bn, accounting for 38 per cent of the group’s revenue.

Networked IT services revenue grew by 12 per cent to £1.1bn and broadband revenue increased by 12 per cent to £543m.

Earnings per share were up four per cent at 11.7 pence, on half-year profit up three per cent to £2.8bn.

BT now has has 11.7 million broadband users, of which four million buy their service from BT Retail.

BT chief executive Ben Verwaayen welcomed what he called a solid set of results.

“We are achieving significant transformation of our business which will deliver further efficiencies alongside faster, better, smarter services for our customers,” he said.

BT Global Services secured total contract wins of £1.6bn in the second quarter, with £9.2bn achieved over the last 12 months.

Global services has been BT’s star performer in recent years, but there are still concerns over profitability of the division, said Mike Cansfield, telecoms strategy Practice leader at analyst Ovum

“This set of results won’t dampen down these concerns. Revenue in the period increased by six per cent to £32.3bn in comparison with last year, but that includes a number of acquisitions – we suspect organic growth is far lower,” he said.

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