Main Menu

Telecoms giant growth squeezed

BT sales slip as 5,000 switch channel

BT SportBT lost 5,000 television customers in the last quarter as revenue slipped 3% to £6 billion.

Pre-tax profits rose 25% to £660 million over the period but over nine months pre-tax profit was down 9% year-on-year on revenue which was 1% lower.

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,”

Richard Hunter, head of markets at Interactive Investor, said BT “remains a work in progress” while growth in the consumer businesses is “being held back by the performance of the other divisions”.

He added: “Key metrics such as revenues and earnings per share remain patchy, while the share price is down almost 50% over the last two years.”

AJ Bell Investment Director Russ Mould, said: “The market appears slightly sceptical of telecoms business BT’s confidence in the full year outlook after a 3% dip in third quarter revenue.

“Concerningly, for a company which has pinned much of its hope for future growth on a sports rights led TV strategy the company lost 5,000 TV customers in the last three months of 2017.

““Further clouds on the horizon include mounting competition for sports rights from the likes of Amazon plus the triennial valuation of a massive pension scheme.”

Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.