BT Profit Third Quarter Net Profit Fell 51% After Italy Write-Down
January 27 2017 - 2:13AM
Dow Jones News
By Simon Zekaria
LONDON--BT Group PLC (BT.A.LN) Friday reported a 51% fall in net
profit on the bigger-than-expected write-down related to an
accounting scandal at its business in Italy, details of which sent
the British telecom operator's stock reeling when they were
announced earlier this week.
The U.K.-based media company posted net profit of GBP374 million
($469 million) in the third fiscal quarter to Dec. 31, down from
GBP766 million in the same period a year earlier.
BT said earnings for before interest, taxes, depreciation and
amortization on an adjusted basis rose 18% to GBP1.87 billion, in
line with company forecasts.
Revenue rose 32% to GBP6.13 billion, also in line with
estimates, though when adjusted and at constant currencies, revenue
fell 1.5%.
Tuesday, BT lowered its forecasts for revenue, earnings, and
cash flow over the next two years, citing the problems in Italy
where it investigating false accounting by senior executives which
inflated profits. BT also gave a downbeat outlook for trading in
the U.K. public sector and in international corporate markets. BT
shares fell 21% on the day as investors digested the news.
Friday, BT reiterated that it expects adjusted Ebitda of around
GBP7.6 billion this fiscal year.
-Write to Simon Zekaria at simon.zekaria@wsj.com
(END) Dow Jones Newswires
January 27, 2017 02:58 ET (07:58 GMT)
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