BT Q4 results show decline in revenue and 15,000 more job cuts
BT's Q4 results released today show revenue up by 1% to £5.4bn for the quarter ending 31st March 2009, £21.4bn for entire year. Whilst being a 1% increase, this is largely due foreign exchange movements and acquisitions. Putting these aside, revenue fell by 5% largely due to BT Global Services.
"Three out of four of BT's lines of business have performed well in spite of fierce competition and the global economic downturn. However this achievement has been overshadowed by the unacceptable performance of BT Global Services and the resulting charges we have taken. During the year we have changed the leadership of BT Global Services and started to turn the division around."Ian Livingston, (Chief Executive) BT Group
BT retail saw a 3% revenue decline to £2,101m driven by a fall in calls and lines, with some offset from a growth in BT conferencing, BT vision and mobility. BT Vision now reaches 423,000 customers. BT Openzone minutes also increased by 80% compared with the same quarter last year, up to 120 million minutes. A good sign from the consumer division was a £2 increase in revenue per customer (based on 12 month rolling average) up to £287 reflective of customers buying multiple services. Market share of broadband for BT Retail stayed at 34% with 99,000 net additions in the quarter with a total of 4.8 million customers.
BT Wholesale also saw a revenue decline, down by 2% to £1,151m, partly due to a continued migration away from their broadband services to LLU. Openreach saw a net addition of 200,000 external LLU lines bringing the total to 5.7 million. Wholesale Line Rental (WLR) also increased by 300,000 up to 5.6 million. The BT 21CN network is now available to over 10 million homes, and this number is increasing steadily.
In hopes to save costs, 15,000 jobs are expected to be cut this year which it hopes will be via natural churn or voluntary redundancies, compounding the 15,000 that have already been cut in the last year. With a final dividend expected of 6.5p, down from 15.8p last year, shareholders will be keen to see saving made wherever possible.