BT sees dip in profit after ‘investment in customer experience’

Telecommunications company BT has today delivered its trading update for the nine months to 31 December 2019.

The multinational business confirmed that its revenue was down 2 per cent, which it claimed was largely due to “ongoing headwinds from regulation, competition and legacy product declines”.

It also saw a 3 per cent dip in profits, which it attributed partially to investment in customer experience and higher operating costs.

The company reported that its capital expenditure was up by £251m (excluding BDUK funding deferral), which was driven by fixed and mobile network investment.

Philip Jansen, chief executive of BT, said: “BT delivered results slightly below our expectations for the third quarter of the year, but we remain on track to meet our outlook for the full year.

“We’ve continued to use our national scale and local presence across the UK to provide customers with the best possible experience, for example by meeting our promise to answer all customer calls in the UK and Ireland and bringing BT sales and service back to the high street in nearly 500 BT/EE stores.

“Underpinning the ongoing development of market-leading propositions, we continue to invest in the best converged network. […] We’re also investing in 5G, making it available in over 50 locations, with the first customers enjoying a great experience.

“The security of our network is paramount for BT. We therefore welcome and are supportive of the clarity provided by Government around the use of certain vendors in networks across the UK and agree that the priority should be the security of the UK’s communications infrastructure.

“We are in the process of reviewing the guidance in detail to determine the full impact on our plans and at this time estimate an impact of around £500m over the next five years.

“I’m really excited about the long-term prospects for this great company and I’m confident our plans will enable us to be bolder, smarter, and faster to ensure that we remain successful and create a better BT for the future.”