BT Group FY08-09 Q3 KPIs — grim reality
March 18, 2009
Q3 KPIs — a grim reality
- This is an extract from issue 2009.02 of BTwatch, published in March 2009. BTwatch is published 10 or more times a year and is available by subscription and as individual reports. For further details, contact sales@marketmettle.com.
BT’s operational Key Performance Indicators (KPIs), which accompanied its third fiscal quarter results (Q3 FY08-09, ending 31 December 2008), again told the same story, with BT Retail’s traditional business (exchange lines and calls) declining at an alarming pace, Openreach benefiting from the pain at other divisions, and the company’s retail rivals performing considerably better (often on the back of Openreach products). Highlights specific to the quarter included:
BTwatch, issue 2009.02 snapshot
March 18, 2009
GROUP: BT released its Q3 FY09 results, with no more surprises unveiled after the earlier profits warning on Global Services. Decent performance at BT’s other customer-facing divisions was overwhelmed by the BT GS bad news, but the board appeared buoyant and confident that a corner will be turned soon. [pp.3-16.]
BTwatch, issue 2009.01 snapshot
February 9, 2009
BT GROUP: BT issued another profits warning due to BT Global Services’ troubles, booking a one-off charge of £340m in relation to failed cost savings and contracts that have failed to meet profitability expectations. The review of BTGS performance is far from over, with major deals such as the NHS contracts yet to come under close scrutiny, and the prospect of BT taking at least one more hit this financial year. The profits warning saw credit agency Standard & Poor’s put BT’s long-term credit rating on CreditWatch. [pp.3-6.] Read more
BTwatch, issue 2008.10-11 snapshot
December 2, 2008
MAIN STORIES: BT released its results for the second quarter of the 2008-09 financial year — although the major news on its performance had been pre-announced in a trading update that warned of a margin slump at BT Global Services, which would bring down Group EBITDA targets with it. The profit warning was met with shock by the City, which sent BT’s share price tumbling to record lows, but, by the time the full results were released — which appeared to confirm BT claims of as-expected-or-better performance in its three other divisions — there was an acknowledgment that BT was recognising that hard decisions will have to be made and was taking action to implement them. [pp.3-17.]
BTwatch, issue 2008.09 snapshot
November 18, 2008
GROUP: BT was rumoured to be considering the sale of part of its stake in Indian business process outsourcing company Tech Mahindra, with mixed reaction from analysts. However, plans for the sale appear to have been put on hold as the financial crisis continues to create uncertainty. [p.3.] Read more
BTwatch, issue 2008.07-08 snapshot
September 20, 2008
GROUP: BT looks set to sell its 31%-shareholding in Indian business process outsourcing company Tech Mahindra (formerly known as Mahindra-BT). Meanwhile, Tech Mahindra itself paid around £1m for a 17.3%-stake in Servista, a UK-based systems integrator. The acquisition of German ICT specialist Stemmer was completed by BT. [pp.2-3.] Read more
BTwatch, issue 2008.06 snapshot
August 22, 2008
KPIs: BTwatch reviewed BT’s latest set of Key Performance Indicators and found disturbing trends showing operational weakness. The picture for BT looks worrying in its core markets, with only Openreach emerging with much credit. In a broader comparison with competitors in the wider communications market, BT also looks to be struggling to make a mark. [pp. 35-40.]
RESULTS: BT released its results from the first quarter of FY08-09, which sparked a dramatic plunge in BT’s share price. While the performance of BT Wholesale was below expectations, Global Services’ improved margin targets received a setback, and pension worries re-emerged, BTwatch wonders if the more frank style of presentation by the new Chief Executive Ian Livingston prompted some of the market consternation. Aside from ongoing allusions to the need to improve the quality of contracts at Global Services, Livingston is yet to resort to pinning the blame for poor performance on the old regime at BT, perhaps because he is too closely associated with it. A clear new strategy to distinguish his leadership and vision from the Bland & Verwaayen double act has not yet emerged either, however. [pp.41-55.] Read more
BTwatch, snapshot of issue 2008.05
July 16, 2008
MAIN STORY: BT announced a £1.5bn commitment to rolling out fibre in the UK. However, on closer examination, the promise is much less impressive than it initially appears. Only £1bn of new network investment is promised over five years, and only £200m over the first two, with the rollout covering less than half the UK’s households at best. The deployment is likely to focus on fibre-to-the-cabinet, rather than to-the-home, meaning actual speeds will be less than half the rates BT is highlighting. Much of the rollout also appears dependent on government bodies being prepared to fund it. BT is also demanding support and reassurances from the regulator, ahead of the Ofcom announcement of its next-generation network policies in September. There are questions to be answered regarding the proposals before they can be seen as more than just PR puff, but should this commitment to fibre be, as BT would have us believe, a step-change in the company’s broadband strategy, it is to be warmly welcomed. [pp.5-8.] Read more
BT commits to £1.5bn fibre rollout
July 16, 2008
BT announced a commitment to begin a £1.5bn programme, to provide fibre-based broadband services for up to ten million UK homes by 2012. The plan is subject to BT being assured that the regulatory regime for the new services will be satisfactory and predictable. The company also announced an end to its current share-buyback programme, reportedly to provide the financial flexibility for projects such as the fibre rollout. Read more
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July 15, 2008
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