BT earnings per share robust during modest first quarter

31st Jul 2014 07:10

First-quarter revenues were down at BT but underlying figures were more positive and profits were 7% higher than the same period last year. "We have made a good start to the year," said Chief Executive Gavin Patterson, keeping his guidance for the full year and pointing to cost cutting continuing at a similar pace as last year, with underlying costs excluding transit and BT Sport down 3%. While the top-line figure fell 2% to £4.35bn, worsening from the 1% fall in the fourth quarter of the preceding financial year, underlying revenues excluding transit were up 0.5%.BT Global Services and BT Business both grew operating profits despite lower revenue.This meant group adjusted profit before tax climbed 7% to £638m, which was slower than the fourth quarter of last year although and adjusted earnings per share maintained the pace of the preceding period with a 10% rise to 6.5p. "Our fibre broadband network now covers more than twenty million premises," said Patterson. "We are passing over 70,000 additional premises each week and demand is strong with more than three million already signed up."The company recently announced a further 2,500 new jobs to support its investments in fibre and customer service. Patterson said he was "excited" by the launch of BT One Phone for the business market and hinted at more excitement to come by saying the company will say more on its "other mobility plans" later in the year. "We are building on solid foundations and I am confident we will deliver on our strategy."