The share price of BT remained dipped by nearly 3 percent in early trading after its first quarter update that revealed the FTSE 100 stalwart had seen both revenue and profit slip.
Revenue fell by 7% to £5.25bn due to COVID-19 related impacts including decline revenues for BT Sport.
Understandably, this fall in revenue contributed to fall in its profits – with adjusted EBITDA coming in at £1.8bn – down 7%. In addition to the fall in revenue, BT also attributes this to investment in customer experience.
Posting a profit before tax of £561m, a decline of 13%, BT was adamant that it had delivered a good performance that shown its resilience as it expects to return to growth later in the year:
“Although uncertainties remain, we are now able to provide an outlook for this financial year. Despite our strong operational performance in the first three months of the year, it is clear that Covid-19 will continue to impact our business as the full economic consequences unfold. Beyond this year and based on current expectations, we expect to return the business to sustainable adjusted EBITDA growth, driven in part by the recovery from Covid-19.”Philip Jansen, CEO