While the UK it pointed to soaring sales of products such as broadband and mobility services, it has yet to compensate for the decline in its traditional fixed-line business.
BT blamed regulatory changes, which cut fixed-to-mobile termination rates, for the decline in its traditional revenue, but it denied that competitors are making inroads into its consumer market share, which it said fell only 0.2% to 72.4% over the quarter.
With debt now down to GBP8.8 billion ($14 billion), the company announced an unspecified share buy-back program to sweeten shareholders disenchanted with the past performance of the company.
Its retail revenue fell 7% in the quarter to GBP3.3 billion pounds ($5.6 billion) with a 7% decline in voice services. However, broadband revenue doubled to GBP68 million ($114.9 million). Revenue at its wholesale operations fell 7% to GBP2.7 billion ($4.6 billion).
Despite a fiercely competitive market, BT global services serving the corporate sector performed well with increased profitability and a 5% increase in revenue to GBP1.38 billion ($2.3 billion).
BT has had to abandon an ambitious target of 6% annual revenue growth. After spinning out its mobile arm, growth will be hard to come by.
This article was based on material originally published by ComputerWire.
