BT FY09 results (Part 1)

(By Anthony Miller – Thursday 14th May 2009 8:00am). There’s a huge amount to digest in this morning’s full year results (to 31st March) from BT, much of which won’t become clear until the analyst briefing at 9am. But let me give you the key points, especially as regards BT Global Services (and see the most recent of our many postings here):

· FY Dividend cut by 60% to 6.5p (now a 7% yield on last night’s 94p closing share price).

· £1.6b pension top-up across next 3 years.

· BTGS Q4 underlying revenues fell 6% to £2.1b with UK revenues down 4% (before contract review adjustments). FY operating loss was £2b on £8.8b revenues.

· £1.3b charges taken against BTGS ‘dodgy deals’ of which £1.2b from two contracts alone (no prizes for guessing etc etc).

· Additional £280m in BTGS restructuring charges taken in Q4 and another £420m over the next two years for “rationalisation associated with people and property”.

· Indeed, there will be a further 15,000 job cuts (direct and contractor) this year across the Group, doubling this year’s layoffs.

· Yet another reorganisation of BTGS into three business units, for UK, multinational and international customers. Phrases involving “deckchairs” and “Titanic” cannot help but spring to mind.

More later.