Daily Management Review

Restructure In BT Group Brings In A Revenue Rise In Its Last Quarter


Most of the year of 2015 has offered a flat revenue collection by BT Group, although following the restructuring the company witnessed a boost in its last quarter’s revenue figures.

Even though the “year-to-date revenues” of BT Group remained flat, data show that company’s third quarter’s revenues have gone up by three percent. According to the results released by BT Group, the revenue for the last quarter of 2015 to the 31st of December was “£4.59bn”, while the rest of the nine months revenue collection amounted to “£13.25bn”.
Moreover, it has also been reported that the profit margin before the tax deduction were almost twenty four percent in the last quarter, whereby totalling to “£862m”. Comparatively, the profit margin of “year to date” settled down at eighteen percent with an amount of “£2.14bn”.
In the words of the chief executive of BT Group, Gavin Patterson, setting a strong result trend:
"BT Consumer had a standout quarter, increasing its overall line base for the first time in well over a decade and capturing 71% of new broadband customers.
“Good customer growth in broadband, TV and mobile helped to grow ARPU by 7%”.
Furthermore, Patterson also drew attention to the fact that the BT Global Services “did well” in the “continental Europe and Asia” sectors’ revenue growth, while he also added that:
“Fibre is underpinning the growth at Openreach with almost half a million premises taking up the service this quarter via dozens of service providers.
“The fibre market is highly competitive and growing all the time, which is great news for the UK economy.”
As per the announcement made by the “FTSE 100 company” after the EE was acquired, a “new organisational structure” emerged a “brand” that will be retained in the long run, which will concentrate on six business lines, namely “Consumer, EE, Business and Public Sector, Global Services, Wholesale and Ventures, Openreach”.
The BT Groups operational, servicing and technological support will be available to all the six divisions which are currently under taking the “core” networking responsibility of BT’s in the United and Kingdom and overseas as the “IT platforms” and “global Research and Development arm” arm of BT Group.
The consumer sector will look into “broadband, telephony, TV and mobile services”. The EE sector will cover “the consumer market” so as to retain its brands and networks that link “hundreds of high street stores”.
Furthermore, the Business & Public Sector is a new addition to the selected business line which has a revenue worth of “£5bn”. The said sector will take into consideration the “existing BT Business along with EE's business division” besides some portion of the BT Global Services that focus on the United Kingdom.
Simultaneously, the “Wholesale and Ventures” will spread its ground to take in “EE's mobile virtual network operator (MVNO) business” and other “specialist businesses” like Payphones, Directories and Fleet; while the sixth division, Openreach remains “unaffected in the restructure”, whereby Patterson informs that the acquisition of EE allows BT Group the scope to bring in a restructured freshness:
“We have done that by creating a major new division that will focus on businesses and the public sector in the UK and Ireland.
“We want to support those sectors by offering customers the very best services whether that be dedicated private lines, network products such as fibre broadband, mobile solutions, IT services or cyber expertise to keep them safe.”