BT happy with transformation progress

Telecoms group BT said today its transformation remained on track after achieving a 5% sales rise in the three months to the end of September.

BT, which is developing new services to counter the decline in its traditional role as a telecoms provider, said revenues hit £4.88bn (€7.2bn) although underlying earnings were 2% lower at £1.38bn (€2bn) – just short of some City hopes.

New wave business such as IT network services and broadband accounted for 30% of group’s revenues, compared with 22% a year ago after a 39% improvement in sales within this area in the second quarter of the financial year.

Chief executive Ben Verwaayen said: “The transformation of BT is right on track with the delivery of another successful quarter.”

BT said revenues from networked IT services grew by 31% to £918m (€1.36bn), while the figure for broadband sales increased by 76% to £350m (€518m).

The performance of the group’s traditional businesses showed a decline of 5%, reflecting competition, prices cuts and technological changes.