BT bullish about revenue dip as fibre rollout continues

BT has published its latest financial report, highlighting growth in the number of high-speed fibre lines it is enabling.

The firm said that during July it had increased the number of premises to which it could supply high-speed fibre connections, and is seeing these numbers increase all the time.

BT added that its other investments designed to support the "future of the business" are doing well.

"We have made an acceptable start to the year, delivering improved financial results while investing in the future of the business. In TV we are offering great value premium sports packages, and can now compete on a more even playing field," said Ian Livingstone, BT chief executive, announcing the numbers.

"We hit the first major milestone in our fibre rollout, passing over 1.5 million premises, and we are now running at an average rate of around 100,000 premises passed every week.

"In BT Global Services we continue to win significant contracts due to our ability to deliver a world class service to our customers."

This did not stop BT posting a four per cent drop in revenue to £5bn, however. But it managed to cut operating costs during the quarter, which it said helped keep the fall in perspective, and profit increased 38 per cent to £375m compared to the same quarter in 2009.

There were a couple of significant highlights during the quarter, which BT said had aided its Wholesale business.

For example, it inked a deal with Orange which will see it take on the management and development of that firm's fixed line broadband, as well as a number of other contracts. BT said that these were worth in excess of £1bn.

BT also made its IP Exchange wholesale service available globally, which is already being used by over 100 fixed line and mobile operators in the UK.