Company Of The Week
Sunday 02 August 1998
As it struggles to compete in Europe, BT is eager to shore up its international businesses and last week announced a planned $3bn (pounds 1.83bn) venture with AT&T, the top US telephone company, to offer voice, data and internet services to large companies around the world. The company's shares rose 9 per cent.
BT's joint ventures in continental Europe, formed to compete in the newly deregulated markets, are not expected to be profitable for another couple of years. Its venture in France, Cegetel, could make a profit this year, however.
Analysts estimate that BT will lose about pounds 300m on its overseas ventures for the year.
The company's plan to create Europe's largest network, connecting 200 cities, is scheduled to begin in the first quarter of next year.
When the venture with AT&T was announced last Sunday, BT said it will take at least a year to win regulatory approval and is expected to add 2 pence to earnings in the first year, 3 pence in the second year and 4 pence in the third.
Analysts are sceptical of those estimates, given that other similar ventures such as the Global One alliance lose money.
BT said its first-quarter results were also hit by a 67 per cent increase in its interest charge to pounds 97m because of a special dividend to shareholders in September 1997.
BT, which will get $7bn later for selling its 20 per cent stake in MCI to WorldCom, has shareholder approval to buy back up to 10 per cent of its shares.
However, other investments and acquisitions will be a priority.
- 1 What happens to your body when you give up sugar?
- 2 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 3 Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
- 4 Penis size: Study revealing 'what's normal' sends international media into meltdown
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
Ayesha Ali death: Mother and her girlfriend found guilty of manslaughter of eight-year-old
George Clooney and Amal fail to get special treatment at New York restaurant
Cindy Crawford 'un-PhotoShopped' viral Marie Claire image was doctored, claims photographer
'A girl is more responsible for rape than a boy': The statement that shocked the world... except India
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...
£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...