Belfast Telegraph

Sunday 26 October 2014

Cost cuts drive BT profits up 12%

Bt has announced stronger than expected results for the year to March 31 for its all-Ireland operation, despite revenues falling.

The communications giant said revenues fell by 3% to £801.1m, although the trend improved in the fourth quarter when revenues were flat on the previous year.

Operating profits increased by 12% year-on-year, as a result of efficiency initiatives and major contract signings and the company cut its underlying costs by 8%.

Overall the group announced profits of £1bn for the year to March 31. BT said it reduced operating costs by 7% in the last year after it cut 20,000 jobs in the period to March 31 - 5,000 more than expected.

Incoming chief executive of BT Ireland Graham Sutherland, said: "By relentlessly managing our costs, we have freed up resources to make significant investments in Northern Ireland.

"In a highly competitive environment and challenging economic climate, this is helping us differentiate ourselves in this marketplace and support consumers and organisations that are looking for services that are innovative, reliable and most importantly good value."

Mr Sutherland is taking over from Chris Clark, who is leaving to head up BT Enterprises in London.

BT also announced plans to invest another £1bn in its roll-out of super-fast broadband to reach two-thirds of UK homes by 2015. In Northern Ireland broadband speeds of up to 40Mb/s are being initially introduced in Balmoral, Bangor, Lisburn and Newtownards through fibre to the cabinet technology (FTTC).

BT has said it will bring faster broadband speeds to 85% of businesses in rural and urban locations in Northern Ireland by 2011.

It is investing almost £30m in the project with a further £16.5m from DETI.

COMMENT RULES: Comments that are judged to be defamatory, abusive or in bad taste are not acceptable and contributors who consistently fall below certain criteria will be permanently blacklisted. The moderator will not enter into debate with individual contributors and the moderator’s decision is final. It is Belfast Telegraph policy to close comments on court cases, tribunals and active legal investigations. We may also close comments on articles which are being targeted for abuse. Problems with commenting? customercare@belfasttelegraph.co.uk

Comment

More

Company Profiles

More

Help & Advice

More

People on the move

More