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BT cuts full-year revenue outlook
November 1, 2012 / 7:11 AM / 5 years ago

BT cuts full-year revenue outlook

LONDON, Nov 1 (Reuters) - BT cut its revenue outlook on Thursday after European corporate customers slashed spending and changes in regulation, resulting in a consecutive miss on sales in the second quarter.

However, deep costs cuts enabled the group to maintain its full-year forecasts for earnings and free cash flow.

The improvement to the cost base also enabled the group to raise its interim dividend by 15 percent, and post slightly better than expected pretax profit for the second quarter.

Britain’s biggest fixed-line telecoms company posted a 9 percent drop in headline revenue of 4.47 billion pounds, missing market forecasts of 4.57 billion pounds for the second quarter.

But pretax profit rose 7 percent to 608 million pounds, beating 595 million pounds average expectations.

The company abandoned its hope that underlying revenue excluding transit would show an improving trend on the minus 1.9 percent seen last year for the full year, but said the second half would still see an improvement.

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