BT Q2 Profit Down 29 Pct, Raises Outlook

ROBERT BARR

LONDON (AP) — Telecommunications company BT Group PLC on Thursday reported that net profit fell 29 percent in the second quarter but upgraded its full-year guidance and said it was making good progress in reducing costs.

For the three months ending Sept. 30, BT reported a net profit of 287 million pounds ($475 million) compared to 406 million pounds a year earlier. Revenue fell from 5.3 billion pounds to 5.1 billion pounds.

BT said earnings before interest, taxes, depreciation and amortization in its struggling Global Services unit — which generates about two-fifths of company revenue — rose 53 percent from the first quarter to 95 million pounds, though that figure was still 10 percent below a year earlier.

The company said it expected to raise its full-year dividend by 5 percent.

BT also said it forecast full-year revenue to be down by 3-4 percent, better than its previous estimate of a 4-5 percent drop, and raised its expectations for cost cuts and free cash flow.

BT shares rose 4 percent to 147.7 pence in early trading on the London Stock Exchange.