BT blames new 3Rs for its revenues slump to £4.5bn

 

BT chief executive Ian Livingston blamed his own version of the three Rs – recession, regulation and rain – yesterday for a sharp fall in revenue at the telecoms giant.

Revenues slumped 9 per cent to £4.47bn in the three months to September against a 6 per cent drop in the period to June.

The BT chief said the worst rain in 100 years in Britain had led to a big increase in engineering call-outs and repairs, which meant BT was less able to cater for new customers.

"The water table was incredibly high," Mr Livingston said. "If you fill something with electricals with rain, it's not good for it."

Asked why other telecoms firms did not appear to be blaming the rain, Mr Livingston said: "I'm assuming we're not disagreeing about the fact there has been a lot of rain."

He insisted he was only referring to the three Rs "partly because the alliteration is good" and that the rain had been far less important than the impact of recession and regulation, which continues to put pressure on prices. The troubled global services division, which parted ways with its boss, Jeff Kelly, in September, was the worst performer as corporate clients in sectors such as banking cut spending because of the global economic downturn.

Revenues plunged 13 per cent and earnings before exceptionals were off 18 per cent in global services, although Mr Livingston maintained the order book was "encouraging".

He said it remained on track to meet its profit targets for the full year to March 2013 and revenues should show "an improved trend for the second half".

That was a change from two years ago, when Mr Livingston told the City to "expect improving underlying revenue trends from 2010/11 to 2012/13, with growth in 2012/13".

Pre-tax profit in the quarter was up 9 per cent at £602m.

Will Draper, a telecoms analyst at Espirito Santo, said there was "relief it's not worse".

BT faces a steep rise in costs from launching its own pay-TV sport channel next summer.

Mr Livingston said "we've done the vast majority of spend" on sports rights, after splashing out £738m on Premier League football.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
filmPoldark production team claims innocence of viewers' ab frenzy
Life and Style
Google marks the 81st anniversary of the Loch Ness Monster's most famous photograph
techIt's the 81st anniversary of THAT iconic photograph
News
Katie Hopkins makes a living out of courting controversy
people
News
General Election
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Pricing Analyst

£30 - 35k (DOE): Guru Careers: We are seeking a Pricing Analyst with experienc...

Ashdown Group: Treasury Assistant - Accounts Assistant - London, Old Street

£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...

Ashdown Group: Sales Team Leader - Wakefield, West Yorkshire

£21000 - £24000 per annum: Ashdown Group: The Ashdown Group has been engaged b...

Ashdown Group: Head of Client Services - City of London, Old Street

£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, int...

Day In a Page

Revealed: Why Mohammed Emwazi chose the 'safe option' of fighting for Isis, rather than following his friends to al-Shabaab in Somalia

Why Mohammed Emwazi chose Isis

His friends were betrayed and killed by al-Shabaab
'The solution can never be to impassively watch on while desperate people drown'
An open letter to David Cameron: Building fortress Europe has had deadly results

Open letter to David Cameron

Building the walls of fortress Europe has had deadly results
Tory candidates' tweets not as 'spontaneous' as they seem - you don't say!

You don't say!

Tory candidates' election tweets not as 'spontaneous' as they appear
Mubi: Netflix for people who want to stop just watching trash

So what is Mubi?

Netflix for people who want to stop just watching trash all the time
The impossible job: how to follow Kevin Spacey?

The hardest job in theatre?

How to follow Kevin Spacey
Armenian genocide: To continue to deny the truth of this mass human cruelty is close to a criminal lie

Armenian genocide and the 'good Turks'

To continue to deny the truth of this mass human cruelty is close to a criminal lie
Lou Reed: The truth about the singer's upbringing beyond the biographers' and memoirists' myths

'Lou needed care, but what he got was ECT'

The truth about the singer's upbringing beyond
Migrant boat disaster: This human tragedy has been brewing for four years and EU states can't say they were not warned

This human tragedy has been brewing for years

EU states can't say they were not warned
Women's sportswear: From tackling a marathon to a jog in the park, the right kit can help

Women's sportswear

From tackling a marathon to a jog in the park, the right kit can help
Hillary Clinton's outfits will be as important as her policies in her presidential bid

Clinton's clothes

Like it or not, her outfits will be as important as her policies
NHS struggling to monitor the safety and efficacy of its services outsourced to private providers

Who's monitoring the outsourced NHS services?

A report finds that private firms are not being properly assessed for their quality of care
Zac Goldsmith: 'I'll trigger a by-election over Heathrow'

Zac Goldsmith: 'I'll trigger a by-election over Heathrow'

The Tory MP said he did not want to stand again unless his party's manifesto ruled out a third runway. But he's doing so. Watch this space
How do Greek voters feel about Syriza's backtracking on its anti-austerity pledge?

How do Greeks feel about Syriza?

Five voters from different backgrounds tell us what they expect from Syriza's charismatic leader Alexis Tsipras
From Iraq to Libya and Syria: The wars that come back to haunt us

The wars that come back to haunt us

David Cameron should not escape blame for his role in conflicts that are still raging, argues Patrick Cockburn
Sam Baker and Lauren Laverne: Too busy to surf? Head to The Pool

Too busy to surf? Head to The Pool

A new website is trying to declutter the internet to help busy women. Holly Williams meets the founders