Ovum: Analyst view: BT continues to focus on cost cutting as revenues continue to decline Jul 25, 2012 – Carrie Pawsey
BT has announced its Q1 results for the three months ending June 2012. Overall the performance was not as good as the previous quarter and year on year total revenues were down 6%, or 3.2% when excluding transit.
BT has managed to achieve a 2% EBITDA increase year on year, however this was achieved through cost cutting measures rather than new revenue generation, as all lines of business saw revenue declines apart from Openreach which remained flat. On a positive note the fibre rollout continues apace, it now passes 11 million homes compared to 2 million this time last year and consumer take up continues to boost broadband sales.
Global Services was the worst performing division, revenues were down 9% year on year (6% underlying ex transit). BT blamed harsh condition within Europe and the financial services sector however the continuing poor performance of Global Services, which makes up around 38% of total revenues, is an on-going concern for the operator.
