BT sees annual earnings at the top end of expectations

31st Jan 2014 07:00

Telecoms group BT raised its earnings outlook for the year after its broadband fibre business and its new BT Sport channels helped it to boost profits by eight per cent in the third quarter.BT said it now expected annual pre-tax earnings before interest, depreciation and amortisation to come in at the upper end of a range of between £6bn and £6.1bn.The group had another record quarter in rolling out its broadband fibre service, with 18m households and businesses now able to access the network.It also said its new BT Sport channels were doing well, with 2.5m customers now signed up, helping to underpin a 6% rise in revenue in its consumer business.The group has the rights to show 38 Premier League matches and also won an exclusive three-year deal to show the European Champions League and Europa League from 2015-16.It said it achieved some particularly strong audience figures in December as it showed some of the top Premier League games over Christmas.BT is battling with rival BSkyB for supremacy in TV sport, but has launched a legal battle to get Sky to give it access to all its Sky Sports channels.Sky claims it is ready to give BT that access, but says it wants wholesale access to BT's sport channels in return in a "two-way" deal.At the moment, BT is able to show just two Sky Sports channels under a deal imposed by regulator Ofcome, while Sky customers who want to watch BT Sport have to buy the channels from BT directly.BT's overseas businesses in high-growth regions again increased revenue in double digits.Adjusted pre-tax profit in the three months to December 31st rose 8% to £722m on a 2% increase in revenue to £4.6bn.Chief Executive Gavin Patterson said: "It's important we keep up the progress we're making across the group whilst continuing to focus on improving the service we provide to customers."PW