BT Searches for Finance Chief Successor -- Update
February 08 2016 - 5:46AM
Dow Jones News
(Rewrites, adds detail.)
By Simon Zekaria
LONDON--BT Group PLC (BT.A.LN) has started a search for a new
finance chief at a challenging juncture for the U.K.
telecommunications group after last year's $19 billion acquisition
of British mobile operator EE.
BT said on Monday that no formal decision has been taken on a
replacement for Finance Director Tony Chanmugam or on the potential
timing of any change. The company made a statement following media
speculation that Mr. Chanmugam may step down from the role later
this year.
Mr. Chanmugam was appointed finance director in 2008 after
holding numerous financial roles at the telecoms company, including
responsibility for its retail division.
The acquisition of EE, which was completed last month, will
propel BT back into consumer mobile services after exiting the
business more than a decade ago.
Earlier this month, BT said it is revamping its corporate
structure after jumping back into consumer mobile services,
highlighting the take-up of fiber-optic broadband services as the
group reported a rise in quarterly earnings.
BT is in a fierce battle for subscribers against telecoms and
media services rivals such as Vodafone Group PLC (VOD.LN), Liberty
Global PLC (LBTYA) and Sky PLC (SKY.LN). It has plowed billions of
dollars into sports TV channels, including English Premier League
soccer rights, as well as the EE purchase.
The deal will allow BT to bundle fixed-line, mobile, broadband
and television services. The takeover gives BT more than 30 million
EE customers. From April, BT is changing its corporate structure
into six divisions to accommodate EE.
BT also has regulatory challenges to face. It has countered
industry criticism that its reach is too powerful through
deployment of network services through its infrastructure division
Openreach, which lays down most of the country's telecom lines. The
network allows rivals to reach customers through wholesale
charges.
Communications regulator Ofcom is looking at whether to force BT
to spin-off Openreach after rivals claimed BT's ownership is
restricting competition and investment for broadband services.
BT says the current ownership structure is good for the country
and that Openreach should be functionally separated, but stay part
of BT.
At 0940 GMT, BT shares fell 1.8% to 468 pence, valuing the
company at GBP47.4 billion.
--Write to Simon Zekaria at simon.zekaria@wsj.com
(END) Dow Jones Newswires
February 08, 2016 05:31 ET (10:31 GMT)
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