1st February 2016
Shares in BT rose 3% in early trading as the telecommunications giant announced “stand-out” quarterly results.
On Monday the group reported that during the three months to 31 December, profit before tax rose 24% to £862m while revenues increased by 3% to £4.59bn.
BT has described the numbers as ‘its best result in seven years’ and has reiterated its profit guidance for 2016.
By 09:25am, stock in the FTSE 100 group was trading 12.85p higher at 497.7p.
BT chief executive Gavin Patterson said: “This is a strong set of results with good numbers across the board.
“We are making good progress towards our goal of sustainable profitable revenue growth.
“BT Consumer had a standout quarter, increasing its overall line base for the first time in well over a decade and capturing 71% of new broadband customers.”
This is the first results announcement from the group, since its acquisition of EE. The group announced a new structure for BT following the deal, which will have six separate sections.
Patterson added: “We’re investing to improve service and are creating a further 1,000 contact centre jobs in the UK, to help us meet our commitment to answer more than 80% of consumer customer calls from within the UK by the end of this year.”
Commenting on the numbers, Ian Forrest, investment research analyst at The Share Centre said: “The results come as the company announced a shake-up of its business structure following its takeover of mobile operator EE, but interested investors should note it said it would retain the brand.
“At present, we recommend BT as a ‘buy’ as the company transforms into the dominant telecoms provider in the UK, develops full value from the EE takeover and uses its strong cash flows to raise dividends well above inflation.”