BT Q2 profit hit hard by restructuring costs

Associated Press

LONDON (AP) — BT PLC says its second-quarter profit fell 17 percent as Britain's biggest fixed-line phone company spent 84 million pounds ($128 million) to restructure its business.

The company said Thursday that net income dropped to 346 million pounds from a restated 415 million pounds in the same period last year. Pretax profit before "specific items" rose 5 percent to 595 million pounds.

Analysts were upbeat about the company, particularly ahead of a high-profile move into television sports.

Richard Hunter, the head of equities at Hargreaves Lansdown Stockbrokers, says the streamlined company has reinvented itself, with its retail division, broadband and fiber network offering big contributions.

Hunter says the foray into TV sports has shown initial promise ahead of the official launch — even though it has a fraction of BSkyB's penetration.

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