LONDON--Telecom company BT Group PLC on Friday reported a
better-than-expected rise in third-quarter net profit, boosted by
demand for fiber Internet broadband.
Net profit rose to GBP558 million ($841 million) in the three
months ended Dec. 31 from GBP493 million in the same period a year
earlier, compared with market expectations of GBP514 million.
Revenue fell 3% to GBP4.47 billion, versus market forecasts of
GBP4.49 billion. Still, revenue at its consumer division rose 7%,
boosted by 15% growth in broadband and television revenue. Free
cash flow jumped 64% to GBP904 million.
The former British telecom monopoly said it still expects its
fiscal-year earnings before interest, tax, depreciation and
amortization adjusted for exceptional items to be between GBP6.2
billion and GBP6.3 billion.
Chief Executive Gavin Patterson said operators are responding to
the strong market demand for fiber broadband.
Mr. Patterson added the company is making "good progress" on its
potential acquisition of mobile operator EE for nearly $20
billion.
Separately, BT said its funding deficit is GBP7.0 billion at
June 30 2014. It will pay GBP2 billion into the scheme over the
next three years with GBP1.5 billion of that being paid before the
end of April.
BT shares closed Thursday at 429.1 pence, valuing the company at
GBP34.93 billion.
Write to Simon Zekaria at simon.zekaria@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires