BT benefits from new wave growth

Ben Verwaayen, chief executive of British Telecom, Thursday reported quarterly results in line with expectations. Group revenues for the quarter to end June 30 increased 3 per cent year on year to £4.8bn, largely spurred by strong growth in the company’s new wave services division.

New wave revenue, which is mainly generated from networked IT services, broadband and mobility reached £1.6bn during the quarter, up 18 per cent year on year and representing 34 per cent of total revenue.

Networked IT services revenue grew by 9 per cent to reach £981m, while broadband revenue increased 45 per cent to £454m and mobility revenue increased 8 per cent to £71m.

BT recorded 8.7 million wholesale broadband connections as of June 30, including 580,000 local loop unbundled lines, an increase of 2.9 million connections year on year and 535,000 connections in the quarter. BT Retail claims its share of broadband net additions was 30 per cent. Over 40 per cent of all UK homes now subscribe to broadband services, the telco said.

As anticipated, revenue from the group’s traditional businesses declined by 4 per cent continuing recent trends. BT said the decrease reflected regulatory intervention, competition, price reductions and also technological changes that it is using to drive customers from traditional services to new wave services.

Group profit before taxation, specific items and leaver costs reached £639m, an increase of 24 per cent.