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| Version 1 | Version 2 |
|---|---|
| BT profits hit by restructuring | BT profits hit by restructuring |
| (about 5 hours later) | |
| There has been a sharp fall in three month profits at BT, hit by £76m worth of restructuring costs. | There has been a sharp fall in three month profits at BT, hit by £76m worth of restructuring costs. |
| Britain's biggest fixed-line phone firm saw profits before tax and after exceptional items fall 30% to £447m ($876m) in the last quarter of 2007. | Britain's biggest fixed-line phone firm saw profits before tax and after exceptional items fall 30% to £447m ($876m) in the last quarter of 2007. |
| But the group reported strong growth in its broadband and global services divisions, where profitability grew. | But the group reported strong growth in its broadband and global services divisions, where profitability grew. |
| BT's retail unit achieved a 35% share of all new broadband connections during the three month period. | BT's retail unit achieved a 35% share of all new broadband connections during the three month period. |
| BT's shares have fallen sharply from their level of 320 pence a year ago. They ended Thursday trading down 9.8% at 237 pence. | |
| Transformation programme | Transformation programme |
| "This has been another solid performance," said BT's chief executive Ben Verwaayen. | "This has been another solid performance," said BT's chief executive Ben Verwaayen. |
| "We remain the UK's number one retail broadband provider and BT Vision customers more than doubled in the quarter." | "We remain the UK's number one retail broadband provider and BT Vision customers more than doubled in the quarter." |
| BT Vision is the company's television service, which currently has more than 150,000 customers. | BT Vision is the company's television service, which currently has more than 150,000 customers. |
| Check BT share price | Check BT share price |
| Pre-tax profits excluding exceptional items fell 7% to £601m. | Pre-tax profits excluding exceptional items fell 7% to £601m. |
| The £76m of restructuring costs are described by BT as being mostly taken up by costs linked to managers leaving, and its transformation programme. | The £76m of restructuring costs are described by BT as being mostly taken up by costs linked to managers leaving, and its transformation programme. |
| BT is in the process of reorganising itself to concentrate more on broadband and software services. | BT is in the process of reorganising itself to concentrate more on broadband and software services. |
| Tax credit | Tax credit |
| It had 4.25 million broadband subscribers at the end of 2007. | It had 4.25 million broadband subscribers at the end of 2007. |
| Its revenue was lower than expected, hit by an 11% fall in wholesale revenue, which is the money that it makes by providing bulk services to other telecoms companies. | Its revenue was lower than expected, hit by an 11% fall in wholesale revenue, which is the money that it makes by providing bulk services to other telecoms companies. |
| Neil McCartney from McCartney Media said that the fall in profits look bad because the figures for the last three months of 2006 were boosted by a tax credit. | Neil McCartney from McCartney Media said that the fall in profits look bad because the figures for the last three months of 2006 were boosted by a tax credit. |
| "It's not as bad as it looks," he said. | "It's not as bad as it looks," he said. |