BT has reported an increase in profits and sales for the last quarter of 2013.
BT reported pre-tax profits of £617m on revenues of £4.6bn for the last 3 months of 2013, this is a rise of 2% on turnover and is the first time they have had a rise since the first quarter of 2009 and also marks a substantial 6% rise in the pre-tax profits.
Much of BT’s growth has come because of the strategic investment in live sports of their BT Sports TV channel to compete against BSkyB. They now have 2.5 million customers using their TV service, many of which are BT Infinity broadband customers who get to receive free access to the BT Sports channels. BT has got a broadband customer base of 7.1 million customers with 1.9 million of those taking out a fibre optic broadband connection with BT.
In the 3rd quarter of 2013 BT Openreach took on 339,000 new superfast broadband customers (not all BT as BT Openreach is the division of BT that deals with rolling out their network), this was up 38% on a year previous. On a net basis, BT added 150,000 standard and superfast broadband customers which equated to 60% growth in the overall market.
BT have invested very heavily in the rights to live sports, with football being the main area they have put most of their money, they have spent £738m per season for 3 years for the rights to exclusively show 38 live Premier League games, they have also spent a further £900m for the exclusive rights to show Champions League and Europa League games for 3 years from 2015 too.
To view a full breakdown of BT’s Third Quarter results visit btplc.com.