'New wave' business keeps BT in buoyant mood

BT has reduced its debt over the past six months and increased profit, although its turnover remains flat.

The telecoms giant released its second-quarter and half-year results ended 30 September. These showed a one per cent increase in turnover for the quarter to £4.6m. Pre-tax profit for the quarter stood at £549m, an increase of four per cent. Half-year turnover was £9.1m with profit reaching £983m, a decrease of four per cent.

BT was keen to flag up its 'new wave' business, generated from IT solutions, broadband, mobility and managed services. For the quarter this part of the business increased by 36 per cent to £1m, with the combined half-year total standing at £1.9m.

The company also said its net debt had fallen by six per cent to £8.2m, and the number of broadband customers had reached 3.3 million, with 607,000 Digital Subscriber Line connections in the quarter.

Ben Verwaayen, chief executive of BT, said in a statement: "The 36 per cent growth of new-wave revenues helped us deliver the best underlying revenue growth in almost three years. We are winning business worldwide."

Phil Codling, senior analyst at Ovum Holway, said software and IT services are increasingly important for BT.

"A lot of solutions business is very network focused, and we expect BT to bolster its software and services growth engine with smaller acquisitions," he said.

sara_yirrell@vnu.co.uk

See also:

BT fires up entertainment division

BT Entertainment to promote on-demand music, gaming, TV and movies  29 Nov 2004

BT accelerator aims for burst of speed

Partners are offered extra commission to grab new business  03 Oct 2004

BT pens deal to acquire BIC

Northern Ireland arm of telco pays £17m for reseller  26 Sep 2004

Voice & Data

  02 Sep 2003

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