BT has released its quarterly financial results, showing revenues of £5,006,000,000.
However, the telecom company’s results, from April to June, show that its revenue dropped by four percent compared to last year.
According to the statement the company reduced operating costs by £291 million and the company’s adjusted profit, before tax was up 17 per cent to £446 million.
It also claims to now have a free cash flow of £415 million, up £537 million from last year and has sliced £1.6 billion off of its net debt, which now stands at £8.9 billion.
Total labour costs were listed as £1,468 million, which the company said decreased by eight percent with direct staff costs, including redundancy costs of £10 million (Q1 2009/10: £45m), decreased by four percent to £1,253m. Other operating costs decreased by nine percent to £2,442 million, which the company said was “principally due to reductions in indirect labour costs.”
BT chief executive Ian Livingston, described the results as “acceptable.” He said in a statement: “We have made an acceptable start to the year, delivering improved financial results while investing in the future of the business.
“In TV we are offering great value premium sports packages and can now compete on a more even playing field. We hit the first major milestone in our fibre roll out, passing over 1.5m premises, and we are now running at an average rate of around 100,000 premises passed every week. In BT Global Services we continue to win significant contracts due to our ability to deliver a world class service to our customers.
“Despite the challenging environment, these financial results underpin our outlook for the full year.”