BT tries on a slimmer, fitter outfit

NEWS Investors are so relieved that BT has stopped haemorrhaging money that they've forgiven the giant telco a small slide in profits. By the standards of European national telecoms operators, BT's first full-year results announcement with Ben Verwaayen at the helm is positively glowing. The incumbent telco has started to get its monstrous debt into shape, and now has a mere £13.7bn hole in its finances - down from £27.9bn the year before. Group turnover was up slightly, at £4.74bn for the quarter ending 31 March from £4.51bn for the year before. However, earnings before interest, tax and debt amortisation fell slightly, to £1.43bn from £1.48bn. Profit before taxation for the quarter was down 28 per cent, to £1.27bn, and earnings per share also fell, to 2.6p from 3.1p. As expected, the group paid its first dividend since 2000 - but at 2p per share, slightly lower than analysts had been hoping. BT investors will be hoping the group's strategy of refocusing on its home market, bigging up broadband, cutting investment and jobs, and generally selling off everything that isn't nailed down will continue to boost its bottom line. The financial markets certainly gave the results an enthusiastic welcome, with BT up over eight per cent, from the opening price of 260p.