BT’s share price has risen half a per cent, after the company revealed a 14 per cent jump in pre-tax profits, which rose to £2.6bn for the 12 months ending 31 March.
Despite the headline rise in profit, BT’s revenue fell two per cent to £17.9bn for the year and £4.6bn for the last quarter.
The company also proposed a dividend of 12.4p per share, a rise of 14 per cent.
Why it’s interesting
It’s been a bumper year for BT. Last week shareholders approved the company’s takeover of EE (pending regulatory approval) and it now serves up broadband to three quarters of the UK’s population. What is more, BT has gambled on the might of televised football, securing rights to show Premier League matches for the next three years.
What BT said
Gavin Patterson, chief executive, said:
It's been a ground-breaking year for BT, in which we've made some key decisions and announced some major investments to underpin the future growth of the business. Profit before tax and free cash flow have both grown strongly and we have delivered or beaten the outlook we set at the start of the year.
Our superfast broadband network now passes more than three-quarters of the UK and we've announced plans to upgrade to ultrafast. This will be another multi-year investment by Openreach and is the right thing for both BT and the UK, providing even faster speeds in an already competitive market.
BT’s gambles over EE and Premier League football may well pay off, and the company expects to see growth in underlying revenue. The company’s foray into the Champion’s league is expected to see it incurring costs in 2015/2016.