BT Group confirms search for new finance director

The FTSE 100 company confirmed on Monday that incumbent Tony Chanmugam “may step down later this year” and that a search process is underway. It said no formal decision has been made about a replacement or around the potential timing of any change.

The news broke over the weekend, after Sky News reported on Saturday that Tony Chanmugam is set to leave the job later this year having held the role since 2008.

A source close to BT told Sky News that Chanmugam’s successor was likely to be recruited from another large UK company.

It comes just a week after the company announced a new organisational structure following the acquisition of EE, a brand which it said will be retained.

It will see the business focus on six lines of business – Consumer, EE, Business and Public Sector, Global Services, Wholesale and Ventures, Openreach.

All six divisions will be supported by BT’s Technology, Service and Operations, which is currently responsible for BT's 'core' networks in the UK and overseas, its IT platforms and its global Research and Development arm.

Consumer will focus on broadband, telephony, TV and mobile services, while EE will focus largely on the consumer market, retaining its brand, its network and its hundreds of high street stores.

The Business and Public Sector, which is a new division with around £5bn of revenues will be comprised of the existing BT Business along with EE's business division and parts of BT Global Services that are UK focused.

Wholesale and Ventures will be expanded to include EE's mobile virtual network operator (MVNO) business as well as some specialist businesses such as Fleet, Payphones and Directories.

Openreach is unaffected in the restructure.

BT Group’s revenue for the three months to 31 December 2015 was £4.59bn, with revenue for the nine months at £13.25bn.