Verwaayen's calling

31 July 2003

The UK carrier s new initiatives to boost growth are working, but merely offsetting a decline in the core business. BT may want to plough more cash into its core business before long. And that could cap its dividend.

This content is for Subscribers only

Context News

BT Group, the incumbent UK telecoms operator, reported sales of £4.6bn for the quarter ended June 30, almost the same figure as in the yearearlier period.

The group's retail division posted revenue growth of 20% in its new wave initiatives to boost growth, such as broadband and mobility. However, this merely offset a 3% decline in the core business, leaving revenues flat overall.

BT grew earnings per share by 64% to 4.1 pence, helped by falling interest charges and a lower tax rate. A sharp fall in redundancy payments boosted the operating result.

The group generated free cash before acquisitions, disposals, dividends and financing of £618m. Capital expenditure again came in below expectations.

Email a friend

Please complete the form below.

Required fields *