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Turnover from the external
sales of BT Ignite Solutions and Syntegra, which provides outsourcing and
systems integration services, both in the UK and worldwide has grown by 17.4%
in the 2001 financial year to £1,074 million after growing by 23% in the 2000
financial year. The reduction in the growth in turnover in the 2001 financial
year is attributable to the transfer of activities to the Concert global
venture in January 2000.
Turnover from BT’s other
sales and services has grown by 17.6% in the 2001 financial year to £1,879
million after growing by 5.7% in the 2000 financial year. The turnover in the
2001 financial year included the fixed-network business of Telfort, Esat and
Viag Interkom since acquisition. Videoconferencing, and broadcasting and other
multimedia services, contributed strongly to the growth in turnover. This
category also included sales by Concert Communications up to early January 2000
before its transfer to the new Concert joint venture.
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BT Ignite’s turnover in the
2001 financial year was £3,861 million with an operating loss of £380 million
before goodwill amortisation and exceptional items. The main driver of operating
losses for BT Ignite is from investments in BT’s new value added business,
amounting to £358 million in the year. These include £115 million in the year
for content hosting and application service provision. The operating losses
generated by fixed operations consolidated for first time in this financial
year, including Esat, Telfort and Viag Interkom, amounted to a total of £135
million.
BTopenworld incurred an
operating loss of £296 million on turnover of £212 million in the 2001
financial year. Its turnover is derived principally from its UK and continental
European narrowband internet access products. Narrowband activities contributed
approximately 50% of the operating loss whilst our broadband services make up
around 40% reflecting the start-up nature of the businesses. It is our aim to
achieve narrowband EBITDA break-even by the end of the 2003 financial year. The
broadband business is expected to follow shortly afterwards. To do this, we
have already put in place various cost cutting measures which include the
reduction of headcount by 20% following a recent reorganisation. We are also
exiting loss making legacy contracts and rationalising our numerous e-mail
platforms.
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