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BT profits continue to fall

BT profits continue to fall

Variation Order Thesis BT have been actively reducing expenditure this year by culling staff and it appears to be working for the company – they have already cut £900m from their annual budget and they are aiming for £1 billion by the end of the year.

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Their revenue is down in the last three months to £5,12 million which is a three percent reduction on last year or six percent if you take into consideration currency movements. The all important operating profit is £550 million which is a significant drop from £648 million last year. BT were forced however to spend £21 million on redundancy deals for their employees.

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BT Global Services made a loss of £96 million on sales of £2,024 million which is a three percent reduction on the same period in 2008 – this was still the case even though costs at the division had dropped by 8 percent. BT Retail had an operating profit of £356 million from a total of £2,062 million in sales.

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