BT (NYSE: BT) reported fourth quarter revenues rose 2 percent to 5.4 billion pounds, slightly ahead of expectations at 5.3 billion. New wave revenues—made up of broadband, mobility and corporate networked IT services accounted for 42 percent of total revenues, coming in at £2.3 billion, a 9 percent rise year-on-year. Net income, however, dropped 6.2 percent to £ 426 million, which the company blamed on a decline in wholesale broadband services, and rising job cut costs, reports Bloomberg.

Additional Highlights:

-- BT had 12.7 million wholesale broadband connections as of March 31, 2008, including 4.3 million local loop unbundled lines. This is an increase of 1.9 million wholesale broadband connections year on year. There were 499,000 total connections in the quarter.

-- Revenues at the wholesale unit were down, hit in part, by the fierce competition to provide broadband from competitors such as BSkyB (NYSE: BSY) and Carphone Warehouse. Fourth quarter revenues fell 12 per cent to £1.18 million. Broadband revenue fell £54 million, dragged down by price reductions, and the continued migration by broadband providers to install their own technology at exchanges, instead of taking wholesale lines. BT also blamed the continuing decline in premium rate service revenues for dragging revenues down.

-- BT Retail, the UK’s largest broadband provider, reported a customer base of 4.4 million as of March 31, 2008. Its retail net additions came in at 150,000, a 30 percent share of its total broadband connections. Analysts, polled by Bloomberg, expected 174,000 additions. Operating profit was up to £391 million from £363 million--£5 million shy of analyst expectations of £396 million.

Release | Earnings Results