BT signals higher full-year profits

BT has said it expects annual profit to come in at the upper end of expectations after what it called an “encouraging” half-year showing.

The telecoms giant posted a 2% increase in adjusted earnings for the six months to September 30 to £3.68 billion, driven by high-end smartphone sales at EE, as well as cost savings.

BT said it expects full-year earnings to be in the upper half of its £7.3 billion to £7.4 billion range.

On a pre-tax basis, profits were up 24% at £1.34 billion in the period.

Outgoing boss Gavin Patterson said: “We continued to generate positive momentum in the second quarter, resulting in encouraging results for the half-year.

“In consumer, we continue to see strong sales of our converged product, BT Plus, and have seen good mobile sales following new handset launches.”

However, BT booked a 2% dip in revenue for the first half to £11.6 billion.

The company said growth in its consumer business was offset by regulated price reductions in Openreach and declines in its enterprise unit.

Last month, BT said that Worldpay boss Philip Jansen will become its new chief executive and take up his role on January 1.

Mr Patterson’s departure was announced earlier this year amid waning support for the company’s trajectory.

BT chairman Jan du Plessis said that, while Mr Patterson had the backing of the board, wider support was starting to wane.

Mr Patterson’s departure will end a near-five year stint as chief executive, having been at BT for a total of 14 years.