Telecommunications and IT services provider BT saw its profits fall by 3% to £1.3 billion in the first quarter of the financial year, as revenues grew by 1% to £5.1 billion.
Once again, it was the company’s IT services divisions that was to blame. That division grew its quarterly revenues by 4% to £2.1 billion – thanks to currency fluctuations during the quarter. But currency fluctuations also triggered an 11% hike in operating cost to £2 billion which contributed to an operating loss of £124 million, compared with a £1 million profit in the same quarter of last year.
Other divisions of the business saw revenues fall too. At BT Retail, its consumer phone and broadband division, revenue fell by 2% to £2.1 billion. Nevertheless, operating cost was cut and operating profit rose 30% to £359 million.
Revenues fell by 1% to £1.1 billion at BT Wholesale, the commercial telephony business, and operating profit also dropped 3% to £149 million. Network operations unit Openreach’s revenue was flat at £1.1 billion, and operating profit fell 5% to £302 million.
We have made a solid start to the year against a background of challenging trading conditions,” said CEO Ian Livingstone. “BT Global Services is making progress although there is still much to do. The rest of the group continues to perform.”