BT Group recorded a 3 per cent year-on-year drop in revenue in its fiscal Q1 earnings, partially affected by unforeseen Covid-19 (coronavirus) challenges, though CEO Philip Jansen (pictured) remained optimistic about delivering its full-year outlook.
In a trading update for the three months to 30 June 2021, BT reported revenue of £5 billion. Its consumer business grew 1 per cent to £2.4 billion aided by its BT Sport unit and an increase in direct handset sales.
The only other unit’s revenue to go up in the period was Openreach, recording a 5 per cent rise to £1.3 billion.
Enterprise sales declined 5 per cent to £1.3 billion due to continued decline in legacy products and a drop in equipment sales.
The company explained its overall revenue decrease, alongside a 21 per cent decline in its Global Business revenue, was due to “more challenging than expected” market conditions, alongside a £39 million negative foreign exchange movement and impact from divestments made in the past year.
Post-tax profit of £2 million was a far cry from the £446 million in the comparable quarter of 2020, though BT noted the figure was impacted by a one-off charge relating to a remeasurement of deferred tax balances ahead of a change in the rate of UK corporation tax.
Jansen expressed confidence in the company’s goal to deliver its outlook for financial years 2022 and 2023, and highlighted “good performance” in the UK which offset the challenges in its Global unit.
The chief added the company also felt “the positive benefits” of its modernisation plans, and expected trading conditions to improve through the year and put BT on the path to growth.
Alongside its results, BT announced a strategic deal with Microsoft targeting innovation across voice, cybersecurity and industry-focused services for enterprise.Subscribe to our daily newsletter Back