BT Searches for Finance Chief Successor -- Update

(Rewrites, adds detail.)

By Simon Zekaria

LONDON--BT Group PLC (BT.A.LN) has started a search for a new finance chief at a challenging juncture for the U.K. telecommunications group after last year's $19 billion acquisition of British mobile operator EE.

BT said on Monday that no formal decision has been taken on a replacement for Finance Director Tony Chanmugam or on the potential timing of any change. The company made a statement following media speculation that Mr. Chanmugam may step down from the role later this year.

Mr. Chanmugam was appointed finance director in 2008 after holding numerous financial roles at the telecoms company, including responsibility for its retail division.

The acquisition of EE, which was completed last month, will propel BT back into consumer mobile services after exiting the business more than a decade ago.

Earlier this month, BT said it is revamping its corporate structure after jumping back into consumer mobile services, highlighting the take-up of fiber-optic broadband services as the group reported a rise in quarterly earnings.

BT is in a fierce battle for subscribers against telecoms and media services rivals such as Vodafone Group PLC (VOD.LN), Liberty Global PLC (LBTYA) and Sky PLC (SKY.LN). It has plowed billions of dollars into sports TV channels, including English Premier League soccer rights, as well as the EE purchase.

The deal will allow BT to bundle fixed-line, mobile, broadband and television services. The takeover gives BT more than 30 million EE customers. From April, BT is changing its corporate structure into six divisions to accommodate EE.

BT also has regulatory challenges to face. It has countered industry criticism that its reach is too powerful through deployment of network services through its infrastructure division Openreach, which lays down most of the country's telecom lines. The network allows rivals to reach customers through wholesale charges.

Communications regulator Ofcom is looking at whether to force BT to spin-off Openreach after rivals claimed BT's ownership is restricting competition and investment for broadband services.

BT says the current ownership structure is good for the country and that Openreach should be functionally separated, but stay part of BT.

At 0940 GMT, BT shares fell 1.8% to 468 pence, valuing the company at GBP47.4 billion.

 
--Write to Simon Zekaria at [e-mail] 
 

(END) Dow Jones Newswires

February 08, 2016 05:31 ET (10:31 GMT)

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