BT profits 4th quarter 2008 BAD - £118 million !

diamonds

three months ended 31 December 2008 the telco made £113m in profit, same in 2007 was £601m

BT Global Services suffered losses of £501m


BT Wholesale brought in £1billion 183m

BT Retail made £2b 134m

Openreach made £1b 329m

BT had 13.6m wholesale broadband connections end of 2008, of which 5.5m LLU, 296,000 additions during the quarter, BT Broadband 4.7m customers
= 34 % market

BT debt is almost 12 billion pounds £11,060m


Now we understand the many BT retail price hikes of early 2009....we pay for BT's incompetent management......

PRESS RELEASE http://www.btplc.com/News/Articles/q309release.htm

littleboo

If you read the information, you'll see that the Retail division actually made increased profits on a slightly lower revenue. In a highly competetive market during a recession, I'd say thats anything but incompetent.

The story with Global Services, well thats a different matter.

1carminestocky

But where's the cash going to come from to pay for the massive infrastructure improvements needed when they continue to pay dividends to shareholders even when their results are this catastrophically bad?

littleboo

but if you reduce your dividends, the shares become worth less and so the companies value decreases.