It was another quarter of eking out profits on declining revenues in a tough market for BT. Q212 saw group revenue drop 9% yoy to £4.47bn, and it was essentially flat compared to Q1 (£4.48bn). PBT was up 7% on the year but the rate of improvement slowed compared to Q1 which saw a 13% uplift (see BT: another player grows profits in no-growth market). Investment in the business, including accelerating the fibre roll out, contributed to some of the decline but cannot mask the underlying problems facing BT.
BT Global Services is still very much in the throes of change and cost cutting programmes, which are reflected in its results - revenue down 13% yoy to £1.76bn, and almost unchanged from Q1 (£1.73bn). Profits continue to sink heavily, with an 18% yoy fall in EBITDA earnings. The operating loss was slightly better however, at £28m vs £31m.
We’ll have further comment following this morning’s conference.