BT Group Profit Before Tax Rises; Backs Full-year View

(RTTNews) - Communications services provider BT Group Plc. (BT_A.L, BT) Thursday said second-quarter profit before tax increased from last year, even as revenues showed a marginal drop. Further, the firm confirmed its outlook for the full year.

Profit before tax climbed to 563 million pounds from 499 million pounds last year.

Adjusted pre-tax profit was 690 million pounds, while it totaled 609 million pounds in the prior year.

Profit for the period declined to 446 million pounds or 5.5 pence per share from 613 million pounds or 7.4 pence per share in the prior year.

Adjusted Earnings Before Interest, Tax, Depreciation and Amortization or EBITDA rose 1 percent to 1.450 billion pounds.

Gavin Patterson, Chief Executive, said, "This was a solid quarter, with results slightly ahead of market expectations as we reduced costs and grew EBITDA."

Revenues for the quarter edged down 1 percent to 4.44 billion pounds form 4.49 billion pounds a year ago. Revenue, before specific items, declined 2 percent to 4.38 billion pounds.

BT Global Services revenue declined 5 percent to 1.65 million pounds, mainly reflecting a 71 million pounds negative impact from foreign exchange movements. Total order intake fell 14 percent to 1.3 billion pounds, due to a large contract renewal with Unilever in the prior year.

BT Business revenue slipped 1 percent to 789 million pounds. This was an improvement compared with the preceding first quarter, reflecting better performances in IT services and in data and networking revenue.

Consumer revenue grew 7 percent to 1.056 billion pounds, with 17 percent higher broadband and TV revenue due to the growth in broadband and BT Sport customer bases. Calls and lines revenue grew 1 percent from last year.

Revenue slid 2 percent in Openreach to 1.245 billion pounds, as regulatory price changes had a negative impact.

Further, the Board declared a 15 percent increase in interim dividend to 3.9 pence per share, to be paid on February 9, 2015 to shareholders on the register on December 30.

Further, the firm said its outlook is unchanged. The company continues to expect underlying revenue excluding transit in 2014/15 to be broadly level with 2013/14 with growth in 2015/16.

Adjusted EBITDA is expected in the range of 6.2 billion to 6.3 billion pounds in 2014/15 with further growth in 2015/16.

The stock fell 2.9 percent on the LSE to 364.70 pence.