BT cuts 2017 and 2018 outlook

Published Jan 24, 2017

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London - Britain's BT cut its

revenue, earnings and free cash flow forecasts for 2017 and 2018

on Tuesday after finding that inappropriate accounting behaviour

in its Italian business went far deeper than previously thought.

BT, which had announced an initial investigation into

historical accounting practices in Italy in October, said a

review had found a complex set of improper sales, purchase and

leasing transactions.

As a result, the size of the write down on the business has

increased from 145 million pounds ($181 million)to around 530

million pounds.

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For 2016/17 it expects a decrease in adjusted revenue of

around 200 million pounds, a decrease in adjusted core earnings

of around 175 million pounds, and a decrease of up to 500

million pounds of normalised free cash flow.

For 2017/18, it expects a similar annual impact to adjusted

revenue and adjusted core earnings. 

REUTERS

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