BT results offer glimmer of hope

 

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By Stuart Turton

Posted on 30 Jul 2009 at 10:55

BT has pulled a rabbit out of the hat by posting surprisingly strong first-quarter results.

Revenues for the quarter ending 30 June hit £5.2 billion, representing a 1% rise over this time last year.

While the figures may not immediately set pulses racing, it's worth remembering that back in May BT's chief executive Ian Livingston was forecasting revenue decline of between 4% and 5% in 2009/10.

Unfortunately for the company, its troubled Global Services department continues to drag down profits. The division made a loss of £124 million during the first quarter. This came despite BT's claims it had reduced Global Services capital expenditure by 47% over the last year.

Global Services - which handles the IT and network needs of large firms - is currently midway through a £420 million, two-year restructuring effort.

BT also claimed to be holding steady with 35% of the DSL and LLU market.