BT back in the black

13th May 2010 07:00

Telecoms giant BT has returned to the black in the last quarter and the full year and reported a 6% dividend rise.The group posted a pre-tax profit of £1.01bn in the year ended 31 March compared with a loss of £244m last time. In the final quarter, the pre-tax profit came to £251m from a loss of £1.31bn previously.Full-year revenue fell slightly to £20.91bn from £21.43bn, while quarterly revenue came in at £5.36bn compared with £5.47bn in 2009.The proposed final dividend of 4.6p gives a full year dividend of 6.9p, an increase of 6%."We are investing in the future of our business, enhancing our TV offering and building on opportunities in our Global Services business. Assuming an acceptable environment for investment, we see the potential to roll out fibre to around two-thirds of the UK by 2015. This will take our total fibre investment to £2.5bn which will be managed within our current levels of capital expenditure," said chief executive Ian Livingston. "During the next three year period we expect to improve our underlying revenue trends, and grow EBITDA and free cash flow, while investing in the business, supporting the pension fund, reducing net debt and paying progressive dividends. We are on track with our goal of creating a better business with a better future."For 2010/11, BT expects revenue of around £20bn and operating cost savings of around £900m.Adjusted EBITDA after leaver costs are anticipated to be in line with last year's level with underlying improvement being offset by the increase in the pension service charge of around £100m and targeted investment in the business of around £200m.