BT Profit Lifted by Cost-Cuts, Sports Channels

LONDON--BT Group PLC (BT.LN) on Thursday posted a forecast-beating rise in net profit as cost-cutting and its sports television channels boosted business.

The U.K. telecommunications company said net profit in the quarter ended March 31 rose to GBP690 million ($1.05 billion) from GBP566 million in the year-earlier period. The result compares with market consensus forecasts of GBP671 million.

Fourth-quarter earnings before interest, taxes, depreciation and amortization, adjusted for exceptional items, rose 7% year-over-year to GBP1.82 billion. Revenue fell 2% to GBP4.64 billion.

Fiscal-year earnings before interest, taxes, depreciation and amortization, adjusted for exceptional items, was GBP6.27 billion, up 3%, at the upper end of the company's guided range. It expects "modest growth" in adjusted Ebitda in fiscal 2016.

It recommended a full-year dividend of 12.4 pence, up 14%.

"Our results and the investments we are making position us well for the future," said Chief Executive Gavin Patterson.

BT has paid billions of dollars to secure key exclusive British and European soccer television rights and bulk up its sports channels. BT's sports-broadcasting platform is a key strategic play to leverage its core broadband telephony business and compensate for declining fixed-line customers, while also bringing stiff competition to the pay-TV market.

It has also agreed to buy mobile operator EE to spook rivals in the U.K.'s rapidly-advancing market of combined telephony, broadband and TV services.

BT shares closed Wednesday at 454 pence, valuing the company at GBP38 billion.

-Write to Simon Zekaria at [e-mail]

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