LONDON, July 25 (Reuters) - BT had to rely on deep cost cuts in the first quarter to lift core earnings 2 percent after tough conditions in southern Europe and the financial sector hit overall revenues.
Britain’s biggest fixed-line telecoms firm reported first quarter revenues down 6 percent to 4.48 billion pounds and an outflow of normalised free cash flow of 124 million pounds.
But cost cuts helped the group to lift adjusted profit before tax up 8 percent and earnings per share by 10 percent.
The results follow a previously solid performance after it hiked its dividend and promised a share buyback in May.
“We have delivered another quarter of profit growth and the 11th consecutive quarter of double-digit earnings per share growth, although our quarterly cash flow was impacted by the timing of working capital movements,” Chief Executive Ian Livingston said.
“BT Global Services was impacted by the tough conditions in Europe and the financial services sector.”
Reporting by Kate Holton