We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

BT Global Services revenue hit by euro zone debt crisis


But the company still manages to reduce losses

Article comments

Revenues at BT Global Services have been hit by the tough economic conditions in Europe, the company reported in its first quarter results on Wednesday.

The division’s revenue was down 9 percent year-on-year to £1.7 billion in the 12-week period to 30 June 2012, thanks in part to lower order values, despite it signing contracts with Rolls Royce, Tesco and Unilever in the quarter.

“Total order intake was £1.1 billion in the quarter, down from £1.6 billion last year, reflecting the market trend towards lower order values and longer lead times,” BT said in its results.

The Rolls Royce contract covered network infrastructure at 55 sites in six countries, while the Tesco contract was for cloud-based contact centre services and the Unilever one for global network optimisation services.

BT also signed a contract with Brazil’s state-owned development bank, Caixa Econômica Federal, to connect additional branches, which is significant because in its previous quarterly results, the company said that it was taking steps to ensure its future growth by investing in newer markets, such as Latin America, Asia Pacific and Turkey, the Middle East and Africa.

At 9 percent, BT Global Service’s experienced the greatest fall in revenue of all the group’s divisions, followed by BT Wholesale (8 percent drop) and BT Retail (3 percent drop).

Despite the revenue decline, BT Global Services’s operating loss continued to narrow, falling 3 percent from £37 million in 2011 to £36 million this year. The division was able to reduce its net operating costs by 9 percent, due to initiatives such as supplier contract renegotiations, increased use of shared service centres for contract delivery, rationalisation of third-party circuits and lower IT costs.

BT’s overall group revenue decreased 6 percent from £4.8 billion last year to £4.5 billion in this quarter, but pre-tax profit was £578 million, up 8 percent.

Ian Livingston, BT’s chief executive, said: “We have delivered another quarter of profit growth and the eleventh consecutive quarter of double digit earnings per share growth.

“There were good performances in BT Retail, BT Wholesale and Openreach, while BT Global Services was impacted by the tough conditions in Europe and the financial services sector.”

He added: “We continue to make good progress with our investments in the faster growing economies.”

Share:

Recommended Articles

Comments

BT Global Services revenue hit by euro zone debt crisis
Financial Planning

Could CFOs do more to boost shareholder value?

Could CFOs do more to boost shareholder value?

Working capital improvements start to pay off, but more could be donemore ..


Amazon slashes Fire Phone price ahead of iPhone 6 launch

Amazon today slashed the price of its three-month-old Fire Phone to 99 cents, an obvious bid to boost slow sales.more ..

Betfair mobile revenues spike during 'record' quarter

App use grows by 162 percent during World Cup periodmore ..

Samsung acquires cloud printing company PrinterOn

The acquisition aims to boost Samsung's business-to-business mobile offeringsmore ..

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unansweredmore ..

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..

Advertisement

* *