BT Q3 revenues, profits fall further than expected

Telecoms-to-television outfit BT reported worse-than-expected third quarter revenues and adjusted profits as investment on mobile devices, higher business rates and pension costs all took a toll.

Adjusted revenue fell 2% to £5.9bn and adjusted earnings were 2% lower to £1.8bn against expectations of a 0.6% decline in to £6,068m, 1.7% to £1,838m. Pre-tax profit for the quarter was up 25% to £660m.

The company said its triennial valuation of the BT pension scheme was proceeding and "constructive discussions continue with the trustee" over the £14bn deficit.

"We still expect to complete the valuation in the first half of the 2018 calendar year. Our aim remains to deliver fair, flexible and affordable pensions to all of our employees," said chief executive Gavin Patterson.

In the mobile phone division, postpaid net additions came in at 235,000, with churn of 1.2%; while average revenue per user down 2% to £26.2.

“Our third quarter financial results are broadly in line with our expectations and we remain confident in our outlook for the full year,” Patterson said.