BT warns on profits
TELECOMS giant BT issued a surprise profits warning today after its division providing services to multinational companies failed to hit targets. BT said its Global Services arm continued to grow strongly but the slower-than-expected delivery of cost savings had impacted on earnings.
It also blamed a continued decline in higher margin UK business. As a result, underlying earnings for the group in the second quarter of the financial year will be slightly below expectations, BT said.
All the company’s other divisions, including BT Retail, have continued to deliver results in line with or ahead of expectations, it added.
Bank’s Qatar boost
BANKING giant Barclays today said Middle Eastern investors were pumping up to £7.3bn into the business.
The cash injection from Qatari investors and the Abu Dhabi royal family comes as the bank looks to avoid calling on taxpayer funds to strengthen finances weakened by the credit crunch.
The funding move follows an earlier £4.5bn cash call by the bank in June.
Tuning in to growth
BSKYB today said its customer numbers topped nine million after the satellite broadcaster bucked “challenging” trading conditions.
The firm added 87,000 new customers in the three months to September 30, taking its total to 9.07 million - its best first-quarter performance for five years.
The broadcaster’s churn rate - customer turnover - rose to 10.9% in a period when the company raised prices, but remains within its 10-11% guidance.
