TV shines but Italian job takes shine off BT quarterly results
Details
Editor
| 27 January 2017

UK telco BT is claiming that the revelation of accounting malpractices at its Italian subsidiary, which has wiped billions off its share value, has overshadowed ‘good progress’ in its third quarter results.
For the three-month period ended 31 December 2016, the company posted overall group revenues of £6.128 billion, up 32% year-on-year, driving a profit before tax on £526 million. However underlying revenue excluding transit adjusted for the acquisition of EE was down 1.5% for the quarter. For the nine months of the year, total adjusted revenues were £17. 954 billion, up 36% compared with the same stage of 2015.

For the third quarter of the year, the company claimed good revenue growth in its consumer-facing lines with revenue was up 4%. Broadband and TV revenue rose 8% year-on-year and there was a 3% increase in calls and lines. Underlying operating costs excluding transit adjusted for the acquisition of EE were up 2%. This figure, said BT, reflected the new FA Premier League rights contract which brought similar cost pressure to pay-TV rival Sky.

BT TV added 52,000 new customers, taking the total base to 1.7 million. BT Sport’s average audience figures were said to have increased 15% excluding Showcase and digital channels.

Commenting on the results, BT chief executive Gavin 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 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 ... We’ll continue to invest to ensure our service levels improve and that our customers see the benefit.”