BT 2Q Profit and Revenue Down 1%; Full-Year Outlook Unchanged

By Adam Clark

BT Group PLC (BT.A.LN) reported Thursday that its second-quarter pretax profit and revenue both dropped 1% from the year-before period in the face of challenges in its enterprise divisions.

The telecommunications company made a profit of 666 million pounds ($884.3 million) for the three months to Sept. 30, compared with GBP671 million the year before. Revenue dropped to GBP5.95 billion, compared with GBP6.01 billion the year before. Underlying revenue was down 1.5%, according to BT.

BT said it faces ongoing challenges in its enterprise units, and particularly its global services arm, where adjusted revenue fell 10% to GBP1.26 billion. BT said it is taking action to improve the performance of the unit, and that its overall full-year outlook remains unchanged.

BT held its interim dividend at 4.85 pence, the same as the prior year, but said its progressive dividend policy remains unchanged. The company added that in future it intends to fix its interim dividend at 30% of the prior full-year dividend.

The company also said that the triennial valuation of its pension scheme is expected to complete in the first half of 2018. As at Sept. 30, its net pension position was a deficit of GBP7.70 billion, down from GBP8.0 billion as at June 30, due to a fall in liabilities.

BT said it is considering a number of funding options to address its deficit, including arrangements to give the pension scheme a prior claim over certain assets.

Write to Adam Clark at [e-mail]; @AdamDowJones

(END) Dow Jones Newswires

November 02, 2017 03:56 ET (07:56 GMT)

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