Wednesday, 21 February 2018

Mixed fortunes for BT as Q3 revenues fall but pre-tax profits and ARPU rally

By Chris Kelly, Total Telecom
Friday 02 February 18

BT's Q3 financial reporting was in line with analyst expectations, as a dispute over employee pension rights continues to rumble on

BT has reported mixed fortunes in its third quarter financial reporting, for the period ending 31st December 2017. BT's overall revenues fell by 3.1% in the 3rd quarter of its financial year, to £5.97 billion. However, its average return per user (ARPU) and net profit before tax both saw significant increases…

BT has reported mixed fortunes in its third quarter financial reporting, for the period ending 31st December 2017.

BT's overall revenues fell by 3.1% in the 3rd quarter of its financial year, to £5.97 billion. However, its average return per user (ARPU) and net profit before tax both saw significant increases. ARPU jumped by 5% to £41.30, while profits before tax increased by a hefty 25% to £660 million.

“We are delivering against our strategy, capitalising on opportunities and responding to market challenges with a robust set of actions. Looking ahead, we’re confident in the steps we are taking to improve the performance of BT for all our stakeholders,” said BT's chief executive, Gavin Patterson.

Unsurprisingly, talk of Openreach's commitment to provide 3 million fibre to the home (FTTH) connections by 2020 dominated the highlights that accompanyed the release, with BT keen to promote Open Reach's Fibre First initiative.

There was positive news also on the mobile front, with BT adding 235,000 new mobile subscribers in Q3. It averaged a low churn rate of 1.2%, however, ARPU for mobile post-paid customers fell by 2%.

BT reported an uptick in its customer satisfaction levels, reporting a 3.6% improvement in its "Right First Time" customer service initiative.

"Our third quarter financial results are broadly in line with our expectations and we remain confident in our outlook for the full year. We continue to improve our customer experience metrics across the Group, with our sixth successive quarter of improved customer perception," said Patterson.

Despite this claim, BT recently came 2nd in Ofcom's list of the most complained about pay-monthly mobile operators in the UK (registering an average of 9 complaints per 100,000 customers).

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