BT’s Global Services division continued to struggle in the three months to 31 December, bringing down the operator’s revenues and profits.
Total reported revenues fell three percent year-on-year to £5.97 billion in the quarter, pushing down EBITDA by two percent to £1.83 billion and profit after tax by 50 percent to £141 million.
The decline in revenue was once again driven by the Global Services division, where sales fell nine percent to £1.27 billion.
BT blamed challenging marketing conditions, a fall in IP Exchange volume and foreign exchange impacts amongst other issues.
Global Services is still feeling the effects of an accounting scandal in Italy after earnings were overstated by £532 million.
BT Consumer reported flat revenues of £1.26 billion, with voice line losses offsetting growth at BT Mobile, but EE saw revenues grow four percent to £1.36 billion thanks to increased postpaid mobile and fixed broadband sales.
The UK-based operator reported a mixed bag at its other business units.
Its Business and Public Sector arm registered a five percent drop in revenues to £1.13 billion due to the declining fixed voice market and lower equipment sales.
Infrastructure subsidiary Openreach saw flat revenues at £1.29 billion, with fibre growth balancing a decline in copper products. The division added 157,000 lines in the quarter, reaching 20.6 million.
Wholesale and ventures, BT’s smallest division, saw revenues fall four percent to £506 million due to decline in managed solutions revenue and data and broadband revenue.
Across the group, the retail broadband customer base rose 35,000 in the quarter to 9.34 million, while the number of mobile subscribers rose 40,000 to 29.8 million.
However, the number of TV customers fell 5,000 to 1.8 million, leading CCS Insight analyst Paolo Pescatore to call the latest Premier League football rights auction, the winners of which will be announced this month, a “pivotal moment” for the company.
CEO Gavin Patterson: "Our third quarter financial results are broadly in line with our expectations and we remain confident in our outlook for the full year.”
He added: “Looking ahead, we’re confident in the steps we are taking to improve the performance of BT for all our stakeholders.”