BT Retail targets strong profits growth

BT Retail targets strong profits growth

BT Retail today issued new guidance to the City, targeting strong profits growth for the 2006/7 full year. The division said it would achieve EBITDA percentage growth in the teens, around three times higher than analysts predicted at the start of the year. The division also expects EBITDA growth in 2007/8, in contrast to market expectations.

The guidance came as the division provided detailed information for several of its constituent businesses for the first time. BT Retail has annual revenues of £8.5 billion and EBITDA of £738 million. It was revealed today that whilst 42 per cent of its revenues came from BT Business, BT Enterprises and BT Ireland, these three units accounted for nearly 60 per cent of its EBITDA. The remainder was generated by BT Retail’s Consumer business.

Ian Livingston, BT Retail chief executive, said: “Today’s guidance shows that BT Retail has turned around and is set for further profits growth whilst investing for the future. The division is making great progress in every area and not just in the consumer space”.

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