BT Shares Remain on Uphill Trend While Profit Dives

BT Shares Remain on Uphill Trend While Profit Dives

BT’s stock value has climbed by 12 percent, following an announcement made about its fiscal results for three months. However, the company’s profit steeply declined by 45 percent, accounting to £272 million. In 2008, BT gained £497 million which was attributed to its cost-saving schemes.
 

Amidst worldwide economic crunch, BT has announced 15,000 job cuts to as a way to lower its spending. The firm also resorted to flexible working packages this month to further save costs.

 

BT chief executive Ian Livingston noted, "We have made a solid start to the year against a background of challenging trading conditions.”

 

"BT Global Services is making progress, although there is still much to do. We are on track to deliver reductions in operating costs and capital expenditure of well over £1bn, and to generate group free cash flow of over £1bn this year. "

 

BT incurred a total revenue of £5.23 billion for the last three months, a figure way better than that of the same period last year.