BT has reported fourth quarter revenues of £5.4 billion, up 2% due to an increase in revenues from new wave services.
New wave revenues from broadband and corporate IT contracts were up 9% at £2.3 billion and now make up over 40% of all group revenues.
BT saw revenue from its traditional business fall by 2% over the three months to the end of March, with revenues from BT’s wholesale business down 15%.
For the full year, it reported revenue of more than £20 billion following an increase of 2%, with new wave making up £8 billion of that.
BT chief executive Ben Verwaayen steps down next month. Sir Michael Rake, BT chairman, 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 CEO 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. Ian Livingston has delivered brilliantly for BT both as group finance director and as the CEO of BT Retail.
“In 2008/09, we expect to deliver continued growth in revenue, EBITDA1 and earnings per share1 as we continue our transformation from a fixed-line business into a software-driven global communications services company. We also expect our free cash flow to be at a similar level to last year.
“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.”
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