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LONDON (Alliance News) - BT Group PLC Thursday said it is on track to achieve its outlook for the full year, as it posted a rise in pretax profit for its first quarter.
For the quarter to end-June, BT posted a pretax profit of GBP632 million, up from GBP546 million, as revenue was flat at GBP4.36 billion, compared to GBP4.35 billion.
On an adjusted basis, stripping out interest expenses on pensions and acquisition costs, amongst other items, pretax profit was GBP694 million, up from GBP638 million, on revenue of GBP4.28 billion. According to broker expectations provided by the company, analysts expected BT to post a pretax profit of GBP683 million, on revenue of GBP2.29 billion.
At the time of its full-year results in May, BT had said it expects to achieved "modest" growth in adjusted earnings before interest, tax, depreciation and amortisation for the current year, despite anticipating some additional costs including the launch of its UEFA Champions League and UEFA Europa League football programming in the year.
BT's key measure, underlying revenue excluding transit, was flat compared to a 1.3% decline last quarter, it said. It saw continued growth in its BT Consumer arm, seeing broadband and television revenue up 7%. Openreach revenue was flat as a strong performance in fibre was offset by a hit from regulatory price changes.
The company said it is moving forward with its proposed acquisition of mobile operator EE Ltd, which is currently amid a phase 2 probe by the UK Competition and Markets Authority. It continues to expect this merger to be approved by March 2016.
"The investments we are making in our business and customer service are building a strong platform for growth. And our financial results show we?re on track to achieve our outlook for the full year," said Chief Executive Officer Gavin Patterson in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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