BT's Verwaayen signs off with strong results

By Kate Holton

LONDON (Reuters) - BT Chief Executive Ben Verwaayen signed off his last set of results on Thursday as fourth quarter earnings met targets, revenues beat expectations and Britain's biggest fixed-line provider forecast more growth ahead.

Verwaayen, who will be replaced by BT retail boss Ian Livingston at the start of June, described the results as a "cracking set of numbers" and analysts agreed that they were mostly robust.

The shares were up 2 percent at 227-3/4 pence as of 9:25 a.m. in a lower market.

"The results are fine really, no great surprises at the divisional levels and the outlook is reassuring," Nomura analyst Martin Mabbutt told Reuters.

Collins Stewart analysts said BT offered bond-like characteristics with growth and a good policy of returns to shareholders. They reiterated a "buy" rating.

Its revenues rose 2 percent to 5.4 billion pounds, ahead of forecasts at 5.3 billion, with good performances from the Global Services and Retail units offsetting weakness at the Wholesale division.

So-called new-wave revenues from broadband and corporate networked IT services represented 42 percent of sales.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) before specific items and staff leaving costs were up 2 percent at 1.57 billion pounds for the three months to March 31, in line with forecasts.