BT Group reported a 5 percent decrease in revenue at £4,764 million for the first quarter ending June 30, 2011. The company’s adjusted EBITDA increased by 3 percent to £1,436 million reflecting the continued delivery of cost reductions.
Total operating costs before specific items decreased by 6 percent to £4,165 million.
BT’s capital expenditure increased by 11 percent to £582 million and is expected to be around £2.6 billion for the full year.
BT added 141,000 retail broadband customers, representing 56 percent of the DSL and LLU market net additions of 251,000.
BT remains the UK’s number one broadband retailer with a customer base of 5.8m at 30 June 2011. This represents a 37 percent share of the total DSL and LLU market of 16.0m.
The company has now passed more than 5 million premises with our super-fast broadband network. Take up has been strong with the number of customers currently using the service having almost trebled over the last six months to over 200,000.
BY grew profit before tax by 20 percent at the same time as investing in the future of the business. Its share of DSL broadband net additions was 56 percent.
Revenue of BT Global Services decreased 5 percent. Total order intake in the quarter was £1.6 billion, up 2 percent, with the 12 month rolling order intake up 8percent. Contracts signed in the quarter included a contract with Lancashire County Council for a range of services for local councils and schools; its largest ever contract in Latin America with the Brazilian Post Office and Telegraph Company for managed network services; and a contract with National Australia Group for the provision of outsourced ICT services.
Revenue of BT Retail decreased by 4percent reflecting the ongoing decline in calls and lines revenue. Consumer ARPU increased by £4 in the quarter to £330 largely due to the increasing penetration of broadband in our customer base. Business revenue remained flat, despite fewer working days in April, with growth in IT services offsetting the decline in the voice business.
During the quarter BT reduced our consumer and business fixed to mobile call charges, after Ofcom lowered mobile termination rates, with BT playing a leading role in the Terminate the Rate campaign.
Revenue of BT Wholesale declined 5 percent reflecting a reduction in transit revenue of £43 million driven by mobile termination rate reductions. Managed network services (MNS) revenue was flat, as sales lead times for new contracts have lengthened. MNS and IP services revenue in the quarter represented 33percent of external revenue (Q1 2011: 30percent).
Revenue of BT Openreach increased 5percent due to growth in Ethernet, broadband and LLU, partly offset by the reduction in WLR. This was the strongest reported revenue growth since the formation of Openreach.
Our overall copper line base increased 18,000 continuing the trend seen in recent quarters as customers recognise the advantages of fixed-line broadband.
Our super-fast broadband network has now passed over 5m premises and the customer base has almost trebled in the last six months. BT Global Services is making further progress in high growth economies and secured its largest ever contract in Latin America,” said Ian Livingston, chief executive, BT Group.
By Telecomlead.com Team
editor@telecomlead.com