Results: Profits fall at BT, NTT DoCoMo


Results: Profits fall at BT, NTT DoCoMo

Natalie Apostolou & Dylan Bushell-Embling  |   July 31, 2009

BT's profit declined 43% to €250 million ($351.9 million), down from €445 million a year ago.

Sales rose by 1.1% to €6.1 billion, however beating analysts’ forecasts of an average profit of €132 million on sales of €5.88 billion. Ebitda dropped 2.4% to €1.5 billion in the first quarter - again an improvement of analysts forecasts of €1.47 billion.

The market welcomed the result after recent under-performing quarters, with BT shares soaring 12.2% on the news, topping the FTSE 100.

In May BT management warned of a drop in sales this year due to lower mobile termination rates and costs associated with its troubled global services group.

It also foreshadowed the culling of 15,000 jobs in the year ahead, with 30% coming from the global services unit.

BT CEO Ian Livingstone said “BT Global Services is making progress although there is still much to do. The rest of the group continues to perform well, generating EBITDA growth of 6%.”

The global services unit, which brings in around 40% of the carrier’s total revenue, delivered an EBITDA decline of 66% to €72 million. BT’s wholesale unit dropped 1.2% to €373 million.

Livingstone added that the company was on track to cut costs and capital expenditure by over one billion pounds and “to generate group free cash flow of over 1 billion pounds this year.”

The carrier reported that through renegotiating contracts and merging operations, it had already achieved €417 million in savings. The CEO also reiterated that sales will drop between four and five percent this year.


Tell Us What You Think

Add comment

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <a> <p> <span> <div> <h1> <h2> <h3> <h4> <h5> <h6> <img> <img /> <map> <area> <hr> <br> <br /> <ul> <ol> <li> <dl> <dt> <dd> <table> <tr> <td> <em> <b> <u> <i> <strong> <font> <del> <ins> <sub> <sup> <quote> <blockquote> <pre> <address> <code> <cite> <embed> <object> <strike> <caption>
  • Lines and paragraphs break automatically.
  • Use <!--pagebreak--> to create page breaks.

More information about formatting options

Video from Telecom Channel

It's all about being connected, but what does that mean for telcos?
Being connected anywhere, anytime, anyhow is the cornerstone of Amdocs ' Connected World' concept. Kevin Corcoran explains how it works.    


Robert Clark
Telstra-NBN unlikely to be major wholesalers, says Ovum
Joseph Waring
Bad customer service is everywhere in the telco industry
David Kennedy/Ovum
A heads of agreement, not a final deal
Lisa Mitnick, Accenture
Operators are positioned to take the lead in embedded mobile systems by leveraging their strong brands and sales and marketing capabilities
John C. Tanner
It's not clear how consumers benefit from industry-preferred model of exclusive TV content contracts
Robert Clark
Try a checklist if your company has walls that need breaking down or information to be shared


Douglas MacMillan and Joseph Galante
After years of losing ground to Amazon in traditional online retailing
Robert Synnestvedt, Cisco
Backhaul networks deserve the same type of undivided attention we've traditionally given radios

MWC2010 List

HTC guns for top 3 smartphone makers
Powermat wants to charge your desktop
Femtos outlook improves as cellcos seek offload options
Cheaper smartphones key to broadband takeup

Frontpage Content by Category

Industry experts put their heads together and stick their necks out to call the big trends for 2010


Staff writer
Editor's shock at $2,000 data service bill
Staff writer
Lim Chuan Poh will vacate his position by year-end