But net income down 86.7%, plans to cut 10000 jobs
BT has reported an 86.7% decline in net income to GBP61m ($87.6m) for the third quarter 2009, on revenue up 5% at GBP5.43 billion ($7.81 billion), and said it plans to cut 10,000 jobs.
It said managed solutions revenue grew 23.4% to GBP1.6 billion ($2.38 billion), while broadband and convergence revenue rose 6.2% to GBP679m ($975.8m). BT Global Services revenue grew 14.6% to GBP2.25 billion ($3.23 billion), while BT Wholesale revenue fell 1.8% to GBP1.18 billion ($1.7 billion). BT Retail revenue fell marginally to GBP2.1 billion ($3.06 billion), while Openreach revenue grew marginally to GBP1.3 billion ($1.91 billion).
During the quarter, the company’s retail share in the DSL and LLU installed base remained steady at 34%. It said that foreign exchange movements negatively impacted EBITDA by GBP17m ($24.4m).
Ian Livingston, chief executive at BT, said: Three of our businesses performed ahead of expectations in the quarter and the group, excluding Global Services, delivered the best year on year profit growth for five years. With our focus on improving the performance of Global Services, continued cost savings and control on capex across the group, we expect group free cash flow, before any pension deficit payments, to be over GBP1 billion ($1.43 billion) next year.
Looking ahead, the company expects to deliver revenue growth for the full year, but group EBITDA and EPS will be affected by the poor performance and one-off charges at BT Global Services.