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BT Shares Price Fall Nearly 20 Percent Amidst Weak Global Services Revenues

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.

You can follow BT's share price movements in real time here (opens in new tab).

Désiré Athow
Contributor

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.