UK fixed-line telecoms company BT Group Plc posted third-quarter earnings at the top end of market forecasts today, despite a continuing decline in revenues from falling prices and higher competition.
The owner of Esat BT in Ireland, which controls over two-thirds of Britain's residential telephone market, said earnings per share before goodwill and exceptional items rose to 4.4 pence for the three months to December 31st from 4.1 pence a year earlier.
Underlying pre-tax profits rose one percent to £526 million sterling ($982 million), helped by lower interest charges and cost cuts. Revenues fell to £4.578 billion from £4.701 billion.
Analysts had forecast underlying EPS at between 3.9 pence and 4.6 pence, averaging 4.3 pence. Revenue forecasts were for between £4.55 billion and £4.69 billion, averaging 4.62 billion.
BT shares were 1.4 per cent higher at 179 pence in pre-trade deals, valuing the company at around 15.46 billion pounds.
With its traditional businesses in decline BT has for the past few years sought to diversify revenue streams with what it calls "new wave" businesses such as broadband Internet connections and handling the information technology needs of
corporate clients.
"New wave revenues grew by 31 per cent in the quarter, our highest rate of growth yet. This has offset much of the impact of the six percent decline in our traditional business," chief executive Mr Ben Verwaayen said in a statement.
BT said it was adding over 45,000 broadband orders a week, and its broadband volumes were approaching two million lines.
