BT CEO Gavin Patterson last week revealed the UK telecom operator’s Capex (capital expenditure), cost optimization and revenue during Q3 fiscal 2016-17.
Capex of BT tolled £852 million (+47 percent) during the third quarter.
Gavin Patterson said 4G coverage is increasing and is well on the way to 92 percent coverage by September. “We intend to maintain on network lead. We’ve plans to make 4G Plus available across 100s of sites this year, customers with the latest devices will be able to enjoy speeds of well over 100-meg,” said Gavin Patterson during an analyst call.
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BT’s cost optimization
During the quarter, BT in-sourced EE’s core network maintenance, improving service and lowering costs. BT set up a single organization to plan contact center capacity and operations across BT which will allow BT to share capacity and drive best practice. “We remain confident in the delivery of our longer-term goals of GBP400 million of annual cost synergies and GBP1.6 billion in value of revenue synergy,” said Gavin Patterson.
BT said it cost transformation programs that delivering sustained productivity improvement in critical customer facing and back office processes. BT has recently launched pilot programs to deploy robotics and greater automation with the objective of improving efficiency in accounts payable processes.
In December, BT combined the design and the service functions in global services to establish accountability for the delivery of new services to improve customer experience and reduce service penalties. “We have already turned our cost transformation efforts and resources to addressing the cost base in public sector and Global Services in light of our revised revenue outlook,” said Gavin Patterson.
BT revenue
BT has generated £1,262 million (+4 percent) revenue from consumer, £1,311 million from EE, £1,190 million (+15 percent) from UK business and public sector, £1,398 million (+8 percent) from global services, £528 million (–9 percent) from wholesale and £1,284 million (–1 percent) from Openreach.
BT’s forecast
BT is expecting a decrease in adjusted revenue of around £200 million, a dip in adjusted EBITDA of around £175 million and a drop of up to £500 million of normalized free cash flow for the full year 2016-2017. The revised forecast is due to the EBITDA impact and the one-off unwind of the effects of inappropriate working capital transactions.
