BT H1 Results Down

Telecoms utility BT has today announced its profits for the first six months of the year, reflecting a downturn on last year as a result of extra-ordinary costs arising from a corporate restructure over the period.

The company today announced that its profits before tax were down 17% from last year to £1.035 billion, as a result of a £450 million restructuring expense designed to make the organisation more dynamic and more responsive to change in the telecoms industry.

BT has invested heavily in recent years in marketing and advertising in an attempt to attract customers back from other service providers. By launching packages around its broadband service that include telephone calls, the company has continued to increase its standing in the telecoms market, after the number of smaller groups posing a threat to their dominance.

Speaking today on the results, an executive from BT said that the growing efficiency of the BT business model as a result of the restructure would enable it to remain competitive for the coming years, as it continues its drive to win back previous customers.

Overall, revenues for the period were up, but only by 3% on the results for last year, reflecting growth from £9.8 billion to £10.12 billion, much less than the markets had been anticipating.

Shares in BT have today traded poorly as a result of the news, although analysts have suggested that their value may see a bounce when the market reopens to reflect the fact that profits, excluding the charge, were still at a stable level.

BT is currently the largest provider of broadband in the UK, with other 4,000,000 monthly customers on its services. It also has a strong reseller infrastructure, enabling its services to expand even further into the market.

Story link: BT H1 Results Down