TELECOMS giant BT has seen revenues sneak ahead in the last year, although profits have remained flat.
The group said that revenues increased by two per cent to £20.7 billion in the year to the end of March, while profits before tax and one-off items remained at £2.5bn.
It forecasts that it will be able to deliver good growth in the current financi
al year.
Of its £5.4bn of earnings in the fourth quarter, new wave revenue – income from areas such as broadband and corporate networked IT services – represented 42 per cent as the firm continued to widen its business scope.
New wave revenue increased by nine per cent in the last year, countering a two per cent decline in BT's traditional business.
It was the last set of results for chief executive Ben Verwaayen, who will be replaced by retail boss Ian Livingston at the start of next month.
Mr Verwaayen said: "We have finished the year in style with a strong fourth quarter performance.
"BT is in great shape with year-on-year growth in revenue, earnings per share, EBITDA, free cash flow and dividends per share.
"It has been a fantastic privilege to work with so many great people over the past six and a half years.
"I am extremely proud of what they have achieved and I believe BT has a great future."
Overseas, BT Global Services has accelerated revenue growth to 28 per cent, while BT Retail continues to be a leader in the highly competitive broadband market.
Sir Michael Rake, BT's chairman, paid tribute to the "exceptional" work of its outgoing boss.
He said: "I would like to express my and the board's thanks to Ben Verwaayen, who is stepping down as chief executive at the end of this month.
"Ben has been an exceptional chief executive who has transformed the business through his vision and determination.
"Under his leadership, BT has developed a strategy which has delivered consistent profitable growth and laid strong foundations for the future.
"It is a tribute to the strength of the team he has built that the board has been able to recruit his replacement internally."
In 2008/09, BT expects to deliver continued growth in revenue, earnings before interest, tax, depreciation and amortisation, and earnings per share.
It is also looking to continue the transformation from a fixed-line business into a "software-driven global communications services company", Sir Michael said.
He added: "I am confident that we have the right strategy and people in place to continue to deliver value for our shareholders and expect to increase dividends per share in 2008/09."
The full article contains 449 words and appears in Edinburgh Evening News newspaper.
