BT on a rise with growing Broadband demands

BT was a on a roll during this year as its services were on an all time high during the last quarter of the year. They experienced a humongous eight year high in the final three months with profits of more than half a million pounds to boost about. The company is said to have added around 356,000 users in the three months till the December 31, from its BT network of Sky and Talk Talk as compared to 253,000 which it gained in the previous quarter. Of this record, the 53% was added by BT’s own broadband network adding up to 188,000 users, which the highest count of the new connections since 2003.The contribution was also made by the BT Vision, BT network’s broadband Television service, by adding 40,000 connections in the last quarted, preceded by 24,000 new additions in the previous three months thus making a total of 545,000 in all.

All these new additions reported a rise of 30% which is £530 million in pre-tax profits towards the last three months till the 31st of December. BT has managed to drive itself towards the profit graph after the efforts of its chief executive Ian Livingston, which concentrated mainly on job layoffs, labour saving and other methods to reduce the overheads inorder to cut down the expenditure. Their step to employing fewer contracts and third party solutions was also headed with the motive to drive towards the betterment of the company and increase profit margins. BT outwitted its rival competitor Virgin Media, who managed to add about 35,000 new customers to its cart during the quarter of September. It has also outperformed the city expectation for pre-tax profits of upto £495 million. However, with all the rise, BT also faced a 3% decline in the revenues for its call and landline services by upto £5 billion which it expects to gain momentum by the year 2012/2013. As said by its chief executive, Ian Livingston, BT has experienced a good share of growth in the BT Retail with its perk at having the highest proportion of sharing in the past eight years. The BT shares in the FTSE 100 Index also experienced a boom by 3% during this period.

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