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BT Q2 profits lower due to restructuring costs

BT released their second quarter results today, with profiits lower compared to the same period last year.

Overall revenue was again up 3 percent, as with the last quarter, across all groups.  But profits were down 31% at £435 million, compared to £629 million in the same period last year.

New wave revenue was up 10% percent.  BT added 479,000 net broadband connections in the quarter, bring the total to 11.7 million connections.  This includes wholesale and retail connections. 

BT’s retail share was 37% and has over 4 million broadband customers.

Profits were hit due to restructuring within the BT group as it aims to cut operating costs and increase margins.  As part of its restructuring program, BT may shed thousands of staff but is currently operating a (so far) successful voluntary redundancy process.

Ben Verwaayen, Chief Executive of BT, commented, “We are achieving significant transformation of our business which will deliver further efficiencies alongside faster, better, smarter services for our customers.  We continue to be the UK’s number one retail broadband provider.”

To ease investor worries, the group also announced an increased interim dividend as tries to reflect confidence in the future.