By Simon Zekaria
LONDON--BT Group PLC (BT) Thursday said it is on track to meet
its full-year expectations after it recorded a rise in
first-quarter profit despite lower revenue, due to a boost in
demand for its fiber-optic broadband service and sports television
channels.
The U.K.-based telecommunications group said net profit in the
three months to June 30 rose to GBP511 million ($797 million) from
GBP441 million a year earlier.
Earnings before interest, tax, depreciation and amortization on
an adjusted basis rose 1% year-over-year to GBP1.45 billion, in
line with consensus market expectations. Previously, BT said it
expected "modest growth" in adjusted Ebitda in fiscal 2016.
Still, revenue fell 2% year-over-year to GBP4.28 billion, lower
than market forecasts.
"This is an exciting time at BT," said Chief Executive Gavin
Patterson. Mr. Patterson also said more than 100,000 consumer
mobile customers have signed up, as the operator bids to complete
its multi-billion dollar acquisition of mobile operator EE.
In the fight with rivals to offer a full range of telephony and
media services, BT has paid billions of dollars to secure key
exclusive live English and European soccer TV rights to bulk up its
sports channels.
BT's sports-broadcasting platform is key to its core broadband
business and to plans to compensate for declining fixed-line
telephony customers, that is bringing stiff competition to the
pay-TV market.
BT shares closed Wednesday at 474 pence, valuing the company at
GBP39.5 billion.
Write to Simon Zekaria at simon.zekaria@wsj.com
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