BT has released its latest preliminary results to 31st March 2008, which showed that the operator’s retail division had managed to increase its broadband subscribers from 4.25m at the end of 2007 to 4.4m (+150,000) now.
Overall BT ended the quarter with 12.7 million wholesale broadband connections, which includes 4.3 million local loop unbundled (LLU) lines. This represents an increase of 1.9 million wholesale broadband connections year on year (+499,000 in the quarter).
However, the increasing rate of migrations away from BT's broadband platform and on to rival unbundled (LLU) ISPs may be starting to take its toll:
BT Wholesale’s total revenue declined by 12 per cent to £1,180 million. Our external revenue decreased by 15 per cent to £860 million in the fourth quarter.
This was mainly due to a decline of £97 million in low margin transit and premium rate services revenues (PRS), as well as reductions in broadband revenue of £54 million as a result of anticipated price reductions (£24 million) and volume decreases due to continued migrations to LLU (£30 million).
We continue to expect a decline in low margin transit revenues in the short term, as other communications providers (CPs) interconnect directly. However, we have re-signed with a number of significant customers to supply transit services for 2008/09 and beyond. Internal revenue was broadly flat at £320 million.
Gross profit decreased by 13 per cent to £380 million, principally reflecting the impact of LLU migrations and price reductions on our broadband revenues.
Meanwhile the operators IPTV service - BT Vision, has quietly continued to grow; now reaching 214,000 customers (+94,000 in the quarter). BT's Home IT Support Service also grew from 23,000 customers last year to 41,000 now.
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