Wednesday, November 8, 2006

BT Sees Sustained Momentum, Increases Dividend

BT reported revenue of 4,941 million pounds Sterling, up 4 per cent, and profit of 665 million pounds, up 12 per cent. New wave revenue was 1,736 million pounds, up 21 per cent, representing 35 per cent of total revenue compared with 30 per cent last year.

Some key operational metrics:

  • Broadband net additions for the quarter were 626,000 of which BT Retail's share was 25 per cent.

  • The company served 9.3 million broadband end users as of September 30, 2006 of which BT Retail now has 3 million customers.

  • Revenue has increased for eleven consecutive quarters

  • Networked IT services revenue grew by 10 per cent to 1,001 million pounds, broadband revenue increased by 39 per cent to 486 million pounds and mobility revenue increased by 4 per cent to 72 million pounds.

  • Consumer revenue in the second quarter was 6 per cent lower, primarily due to wholesale line rental (WLR) substitution. Growth in new wave revenue of 44 per cent continues to reduce our dependence on traditional revenue which has declined by 12 per cent with the strategic shift towards new wave products and services. New wave revenue now represents 17 per cent of the total consumer revenue.

21CN Update

BT's 21st Century Network programme is making process. The construction of 10 per cent of the UK's core communications infrastructure is in place and fully operational. Site planning and preparation has been completed in all core and metro nodes in South Wales, and at a further 100 sites across the country.

Nine new fibre rings, totalling 2,100 kilometres, have been installed in South Wales and 1,500 man years of IT systems development work has been carried out. All of this preparatory work is required to support the migration of the first end user customers to 21CN. This is scheduled to take place near Cardiff at the end of November.

Readiness testing of the network, systems, services and customer premises equipment (CPE) is well advanced. A test facility in Swansea, where other communications providers can test their services, was opened on October 25, 2006. Live voice calls have already been carried over the new 21CN network, built using 21CN hardware and software, in South Wales.

See also