BT's quarterly newsletter for industry analysts 
BT’s third quarter results
Highlights:
- Revenue growth of five per cent driven by acquisitions and foreign exchange
- EBITDA decline due to poor performance in BT Global Services and one-off charges
- Rest of the business performed ahead of expectations, with EBITDA growth of five per cent being the best year on year performance for five years
- Total one-off charges of £336m as a result of the financial and contract reviews in BT Global Services
- Completion of the ongoing contract and operational reviews may result in further substantial one-off charges in the fourth quarter
- Decisive action to improve performance in BT Global Services
- Free cash flow improved due to lower working capital outflow and lower capital expenditure
- Total labour resource reduction of 9,500 in the nine months to 31 December
- BT’s retail share of the DSL and LLU installed base remained steady at 34 per cent (28 per cent share of net additions in the quarter)
- BT Global Services order intake remained steady at £1.8bn in the quarter and £8.3bn over the past 12 months
"Three of our businesses performed ahead of expectations in the quarter and the group, excluding Global Services, delivered the best year on year profit growth for five years," said BT’s chief executive, Ian Livingston. "However, as previously announced, the group results have been severely impacted by the performance of our Global Services division."
He added: "We need to build a solid base in Global Services from which we can deliver positive cash flows. We have already announced changes in management and are making significant financial and operational changes to the business. We are also trying to change the division's cash flow profile to ensure it’s less concentrated towards the fourth quarter and, as a result, fourth quarter cash inflow in Global Services will be significantly lower than last year's exceptionally high figure."
"With our focus on improving the performance of Global Services, continued cost savings and control on capex across the group, we expect group free cash flow, before any pension deficit payments, to be over £1bn next year."