BT cuts revenue target as profits rise

dahamsta

ENN

British Telecom, Esat BT's parent company, posted a small profit for its second quarter thanks to continuing cost reductions, but has shifted away from key revenue targets.

The telecom giant posted a 55 percent rise in pre-tax profits to STG496 million (EUR772.9 million). Net income for the second quarter was STG315 million, or STG0.036 a share, compared to a loss of STG1.48 billion, or STG0.173 a year ago.

The company attributed the solid results to a continuing rationalisation strategy which seen it whittle away its massive debt load. Over the last 18 months, BT has been struggling to reverse an expansion strategy that left it with STG28 billion in debt, losses and lower credit ratings. In the second, net debt was lowered by STG285 million to STG13.1 billion. BT is to sell its stake in French telecom Cegetel, which will reduce its net debt by a further STG2.5 billion.

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The Reg

Shares in BT rose this morning after the monster telco reported improved turnover and profit for the second quarter.

Group turnover rose 2 per cent to £4.66bn, up from £4.55bn during the same period last year.

Although the dominant telco only saw a slight increase in turnover, pre-tax profit jumped 55 per cent from £321m to £496m for the three months to the end of September 2002.

BT also managed to reduce its debt by £285m during the quarter. And once the disposal of its share in French telecoms outfit, Cegetel, is completed BT should see its debt reduced still further by around £2.5bn.

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crawler

Interesting they are reducing debt by Asset sell-off's - I wonder what the future holds for them in Ireland ( esatBT)....?