BT, the UK’s former telecommunications monopoly, reported fourth-quarter profit that beat analysts’ estimates, bolstered by the acquisition of mobile operator EE.
Earnings before interest, taxes, depreciation and amortization rose 14 per cent to £2.08 billion ($3.01 billion) in the period ended March 31, the London-based company said Thursday. That compares with an average estimate of £1.93 billion. Sales rose 22 per cent to £5.66 billion, compared with an average estimate of £5.67 billion.
The period includes two months of results from EE, the UK’s largest mobile network, which BT acquired at the end of January.
The European Commission is expected to block a combination of two of EE’s rivals — CK Hutchison Holdings Ltd.’s Three U.K. unit and Telefonica SA’s O2 — people familiar with the situation have said. That would lessen the competitive threat to BT’s position in the U.K. mobile market, analysts say.
The acquisition rounded out BT’s consumer business, which also includes fixed-line telephony, broadband and a growing portfolio of entertainment. The company has been trying to enhance its bundled offerings in order to fend off a challenge from pay-TV provider Sky Plc, which has been adding telephony services.
BT added 415,000 fiber optic connections, including upgrades. The company said it plans to invest billions of pounds in its network to bring ultrafast broadband and 4G mobile connections to more than 95 per cent of the country by 2020.
© 2016 Bloomberg L.P
