BT Group profits fall 20%
Telecoms giant BT saw full year profits slide by 20% mainly due to a restructuring charge of £402m.
Pre-tax profits slid to £1.97bn from £2.48bn previously on revenue that rose only 2% to £20.7bn as new wave revenue rose 9% but traditional revenue slipped 1%. Before specific items, profit was flat at £2.5bn.
The group incurred £402m of the estimated £450m restructuring costs in 2008. The remainder of the costs is expected to be incurred in 2008/09.
Fourth quarter pre-tax profit fell 11% to £595m on revenue up 2% to £5.4bn.
"We expect to continue to deliver revenue growth as we continue our transformation from a fixed-line business into a software-driven communications services company," said the group.
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"Our continued focus on driving efficiencies across the group is expected to generate further gross cost savings of some £700 million which will contribute towards growth in EBITDA before specific items and leaver costs," it added.
In the fourth quarter, BT Global Services delivered EBITDA growth of 13%, while outside the UK, revenue in the division increased 28%.
Broadband outfit BT Retail saw 8% rise in EBITDA, while BT Wholesale saw over £1bn worth of contracts signed in the fourth quarter.
Full year dividend is 5% higher at 15.8p per share.
