SHARES in BT dipped 3 per cent today after the telecoms group posted a fall in first-quarter revenues amid “tough” conditions in Europe.
The UK’s biggest fixed-line telephone operator generated revenues of £4.5 billion, a decline of 6 per cent, as its loss-making global services division suffered amid the eurozone turmoil. Global services, which builds networks for governments and large companies, saw turnover dive by more than 9 per cent to £1.7bn.
Ian Livingston, Scots-born chief executive of BT, said conditions in Europe have got worse rather than better. This has stunted spending in key sectors such as financial services.
“It now takes longer for contracts to be signed,” Livingston said. “People aren’t doing transformational deals because the outlook is so uncertain.”
Sales in the retail division fell by 3 per cent, with an increase in broadband only partially offsetting lower call and line revenues.
Yet pre-tax profits rose 13 per cent to £584 million as BT continued what has been an aggressive cost-cutting programme. Operating costs during the quarter were 9 per cent lower than in the first quarter of last year.
The company’s shares were pushed as much as 6 per cent lower in early trading but recovered some ground to finish the day 7p lower at 210p.
