BT Total Broadband Helps BT Deliver Strong Performance
After BT Total Broadband routed rivals in the broadband market during the final quarter, parent company BT posted a 71 per cent rise in full year pre tax profits of £1.7 billion for the financial year ending March 31st, having earned a whopping £495 million during the last three months.
Revenue however declined by four per cent during the financial year, with a six per cent decline quarter on quarter which the company says was in line with expectations.
“We have delivered profits and free cash flow ahead of expectations for the year, while making significant investment in the business for the future. Free cash flow has nearly trebled compared with two years ago,” said BT chief executive (CEO) Ian Livingston.
“We expect to continue to grow our profits and free cash flow whilst investing to return BT to growth. These results show we are making progress, but we are well aware there remains a lot more to do.”
Despite the robust profit numbers the telecoms major increased its call charges by nine per cent and increased its monthly rental fee by 30 pence, a move which some say might upset many of the company’s customers.
BT’s performance in the broadband market was impressive to say the least. 64 per cent of the 252,000 broadband customers added to its network during the final quarter went to BT as opposed to rivals.
Contrastingly rival Virgin Media Broadband added 151,000 new connections to its network, a figure which suggests that for every new Virgin customer, BT adds seven.
The Openreach and Wholesale divisions added 1.1 million new broadband connections over the year, which other ISPs like Sky Broadband and TalkTalk Broadband can rent to provide services to customers.
BT’s Infinity customer base currently stands at 144,000 with the service receiving an average of 5000 orders a week, twice that of Virgin during the last three months, with Virgin adding 32,000 customers to its 50 Mbps service.
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