Pretax profit at BT fell 45% in 2nd quarter

Article Abstract:

British Telecommunications PLC (BT) lost 45 percent in pretax profit in 2nd qtr FY 93, but the British telephone market did show some signs of recovery. A 1.8 percent rise in domestic revenue was prompted by a small rise in call volume. Though the profit was down to 431 million pounds sterling from 785 million, it fell less than expected. BT's stock rose from 373 pence to 388 pence on the London exchange. BT expects to receive $1.8 billion in the second half of 1993 from the sale of McCaw Cellular Communications to AT and T, but BT denies speculation that it will begin a US or UK takeover with the money. BT will watch for opportunities arising from the resulting changes in the US telecommunications industry. The McCaw sale enables BT to break even on the 1989 stock purchase. BT lost over $250 million Canadian in selling shares of Mitel Corp, a Canadian manufacturer of telecommunications equipment. BT also put out 386 million pounds sterling in the 2nd qtr for a job-reduction program.

Finance, Profits, Divestiture, Revenue, Divestment, Telecommunications, Profit, Stock, Financial Report, Second Quarter

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East European nations are grappling with cost of updating phone systems

Article Abstract:

Efforts to upgrade the antique Eastern European telephone systems are proving slower, costlier and more difficult than was imagined when the communist governments collapsed. One problem is that telephone systems are but one of a long list of things that need fixing. Some companies have found success in such niche markets as cellular phone equipment, but their customers are primarily wealthy Westerners working in the East. In contrast, Minnesota Mining and Manufacturing Co says Eastern Europe is its best market for selling the simple plastic parts that splice together decades-old copper wire. Ambitious modernization plans would cost $94.12 billion; in contrast, $2.6 billion was spent in 1991 on Eastern European telecommunications. For the foreseeable future, many callers will have to cope with failed calls and manual switchboards that only operate during normal office hours.

Capital investments, Telephone systems, Product obsolescence, Telephone System, Capital Investment, Upgrading, Obsolescence, Europe, Eastern

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British Telecom is still seeking magic formula for global success

Article Abstract:

British Telecommunications (BT) PLC has been struggling for eight years to expand beyond its home base in Great Britain. Despite three different international strategies, a variety of managers and a series of overseas acquisitions and divestments, the company has yet to establish itself as a major international telecommunications firm, or 'Top Telco' in company argot. BT recently beat another overseas retreat when it agreed to sell its $1.75 billion investment in McCaw Cellular Communications Inc to AT and T. London financial analysts express puzzlement over BT's foreign strategy and prospects. BT's latest strategy is to provide a broad selection of specialized communications services to multinational corporations. But BT's Syncordia, based in Atlanta, GA, has only four multinational customers.

Telephone Communication, Foreign operations, International markets, Strategic Planning, World Market, Market Penetration, Foreign Investment

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