BT’s share price plunged by 26 percent since this morning, after it announced that it would fail to meet its projected profit targets for the second quarter.
The company attributes the shortfall to the dismal performance & rising costs at one of its units, Global Services, which provides services to multinational corporations.
Analysts had earlier predicted the earnings before interest, tax, depreciation and amortization (EBITDA) of the division to fall significantly short of the projections.
BT’s shares dropped below the price they were issued at in 1984, after the company admitted that the earnings from its Global Services arm would be much lower than what was projected.
The chief executive of the group, Francois Barrault, has resigned after the news hit the floor and group’s finance director, Hanif Lalani will replace him as the group’s new head.
Company’s Chief Executive, Ian Livington said in a statement, “We remained committed to providing world-class networked IT services to our customers”, and asserted that the company would now focus on enhancing its operational efficiency to drive shareholders value.
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