BT reported second-quarter sales that beat analysts’ estimates, boosted by customer additions in its mobile-phone, broadband and pay-television businesses.
The company added users in all three areas, it said in a statement on Thursday.
Revenue advanced to £6 billion (€6.7 billion) in the three months to the end of September, up 1.1 per cent, adjusted to account for the purchase of wireless network EE this year.
Analysts were expecting sales of £5.94 billion on average. Revenue in BT’s consumer-facing businesses was up 11 per cent, led by gains in broadband and TV.
While the UK's decision to leave the EU and the resulting weakening of the pound has had an impact on BT's results, the company's businesses are resilient, chief executive Gavin Patterson told Bloomberg.
“Broadband and mobile are the last things to go in the home budget,” he said. “People will give up vegetables before they will give up broadband.”
BT said it made progress reining in costs generating a 0.9 per cent adjusted increase in earnings before interest, taxes, depreciation and amortization to £1.89 billion.
The company also confirmed an accounting probe at its Italian unit, reported by Bloomberg News in September. The investigation has found historical accounting errors and the company has “reassessed certain areas of management judgment” at BT Italia.
In the second quarter, the company wrote down £145 million as a result, and said the investigation is ongoing. Bloomberg reported previously that BT had suspended two top managers at BT Italia, citing people familiar with the matter.
"It would be wrong at this stage to discuss the inappropriate behavior," Mr Patterson said. BT shares have fallen 18 per cent this year, as concerns about the health of its pension and a review by regulator Ofcom have clouded the outlook for the former UK telecom monopoly.
They climbed 0.3 per cent to 388.85 pence at 8:43am in London. The net pension deficit stood at £9.5 billion at the end of September, up from £6.2 billion on June 30th.
