BT 2Q Profit Beats Forecasts

By Simon Zekaria

LONDON--BT Group PLC (BT.A.LN) Thursday lauded its strategic direction as the U.K.-based telecommunications group recorded a forecast-beating rise in quarterly profit, with demand for its fiber-optic Internet broadband and sports television channels boosting business.

The U.K. group's net profit in its second quarter, ended Sept. 30, rose to 525 million pounds ($801 million), compared with a market consensus forecast of GBP481 million, up from GBP446 million in the same period a year earlier.

BT's closely-watched earnings before interest, taxes, depreciation and amortization on an adjusted basis fell 1% year-over-year to GBP1.44 billion, hit by spending on its sports TV business.

Revenue in the second quarter on an adjusted basis was unchanged at GBP4.38 billion, higher than a consensus market forecast of GBP4.33 billion. Excluding exceptional items, foreign exchange movements and acquisitions or disposals, as well as transit costs, revenue rose 2%.

"Our strategy is delivering and our results show we're on track to achieve our outlook for the year," said Chief Executive Gavin Patterson.

The telecom company competes with rivals such as Sky PLC and Liberty Global PLC's Virgin Media for subscribers in the U.K.'s competitive telephony and media services market. To attract broadband users, BT has spent billions of dollars on premium sports content.

The group recommended an interim dividend of 4.4 pence, up 13%.

BT shares closed Wednesday at 469 pence, valuing the company at GBP39.2 billion.

Write to Simon Zekaria at [e-mail]

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(END) Dow Jones Newswires

October 29, 2015 03:50 ET (07:50 GMT)

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