BT results beat expectations on Global Services boost
BT's Global Services division gives the telecoms giant a boost in Q2.
Telecoms giant BT posted better-than-expected second quarter results with operating profit up three per cent, partly thanks to a solid performance from its Global Services division.
Overall profit hit 1.495 billion, whilst reveunue was down two per cent compared to the expected 3.8 per cent.
Global Services, which works with IT departments to implement solutions including network security and unified comms, saw profit surge 15 per cent.
This strategy and our financial results allow us to invest when others are merely talking about it.
"Last year a lot of our focus in Global Services was on renewals. This year it has mainly been about winning new customers," said Jeff Kelly, CEO of the BT division. "More and more multinational companies want to do business with Global Services."
Difficult conditions in Europe, however, have forced the Global Services division to look elsewhere for business.
"Our customers are now seeking opportunities in other regions as economic conditions have been challenging in Europe," Kelly added.
"In the last year, around 80 per cent of our largest customers have expanded operations in Asia."
BT said it will place a heavy focus on Latin America, where it plans to recruit 25 additional staff in the region. It will also add a fourth data centre facility in Mexico City and set up a 10Gbps fibre optic ring connecting its four data centres in the region.
BT added a significant number of new broadband customers in the second quarter.
The telecoms firm said 263,000 homes and businesses joined its network, partly thanks to other ISPs riding on top of its infrastructure. BT said it added around 11 new customers for every one Virgin added over the quarter.
BT Retail took 63 per cent of those net additions, gaining the business of 166,000 homes and businesses.
BT claimed its Retail division became the first ISP to pass the 6 million milestone for broadband customers.
"We expect to continue to offset the economic headwinds through improved customer service and processes, better efficiency, and investment in the future of the business. This strategy and our financial results allow us to invest when others are merely talking about it," said BT CEO Ian Livingston.
"We are accelerating our fibre roll-out programme to cover two-thirds of the UK by the end of 2014 one year earlier than planned and creating 520 new jobs. With the already announced government support, we believe there is the potential for fibre-based services to reach more than 90 per cent of the UK within a few years thereafter."
BT has made a number of significant commitments to fibre of late. Last month, it cut the cost of access to its infrastructure after complaints from other ISPs. However, Virgin said it was still unhappy with the new pricing.
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