Global Services Drags Down BT

BT Group reported a 1% fall in underlying revenue for the year to March 31st to 23.7 billion pounds (26.9 billion euros) and forecast a 2% fall for the year to March 31st, 2019.

The London-based company said the 3% growth in its consumer businesses was more than offset by decline in its enterprise divisions. "The main contributor to enterprise revenue decline was Global Services whose reported revenue declined 9% due to ongoing challenging market conditions and a reduction in IP Exchange volumes and equipment sales in line with our strategy to reduce low margin business."

Yet BT plans to increase capital expenditure from 3.5 billion British pounds in the past financial year to 3.7 billion pounds in this year. source: BT statement