Report Overview


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BT FY 2009-10 Q1 results: what goes down


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BT’s Q1 results provided welcome respite from a string of bad news, and some evidence of management’s ability to cut costs, but were helped by a temporary sharp reduction in capex and a VAT repayment. It remains early days.
The ‘21st century’ upgrade to the core network now appears to be largely complete and delivering cost savings, but a separate voice network will continue to run over the access infrastructure.
The company’s project to deploy more fibre beyond the local exchange, whilst a useful defensive move, looks unlikely to have a major impact on shareholder value.