bt warns on 2017 2018 profit after italian accounting scandal
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

BT warns on 2017, 2018 profit after Italian accounting scandal

Arab Today, arab today

Arab Today, arab today BT warns on 2017, 2018 profit after Italian accounting scandal

A man outside the BT Group Plc’s headquarters in London. BT said a review found a
London - Arab Today

 Britain’s BT cut its revenue, earnings and cash flow forecasts for the next two years on Tuesday after finding that improper accounting at its Italian business went far deeper than previously thought, sending its shares 15 per cent lower.

The telecoms company, which had revealed an initial investigation into historical accounting practices in Italy in October, said a review had found a complex set of improper sales, purchase and leasing transactions.

A writedown to the business of £145 million ($181 million; Dh662.36 million), announced in October, has been increased by more than three times to around £530 million.

According to a person familiar with the situation, staff had colluded with suppliers to inflate their accounts over a number of years, before a whistleblower contacted senior executives at BT headquarters last summer to make them aware of the practices.

“We are deeply disappointed with the improper practices which we have found in our Italian business,” Chief Executive Gavin Patterson said.

BT also said it had seen a deterioration in its UK public sector business and international corporate markets. The news sent its shares tumbling, putting the firm on course for its biggest one-day drop since 2008 and to a 3.5-year low.

Group revenue will now not grow for the next two years while the guidance for core earnings, or earnings before interest, tax, depreciation and amortisation, has been cut to £7.6 billion from a previous guidance of £7.9 billion.

Normalised free cash flow for 2016/17 is expected to come in at £2.5 billion, compared with a previous forecast of between £3.1-£3.2 billion. And free cash flow is also forecast to be lower than the guidance given for 2017/18.

The group said it had taken immediate steps to strengthen its processes and controls in Italy. It suspended a number of BT Italy’s senior management team, who have now left the business, and appointed a new BT Italy CEO who will take charge on February 1.

“Further, we are conducting a broader review of financial processes, systems and controls across the group,” it said. “The BT Group Remuneration Committee will consider the wider implications of the BT Italy investigation.”

 

source : gulfnews

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

bt warns on 2017 2018 profit after italian accounting scandal bt warns on 2017 2018 profit after italian accounting scandal

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

bt warns on 2017 2018 profit after italian accounting scandal bt warns on 2017 2018 profit after italian accounting scandal

 



GMT 21:16 2016 Monday ,27 June

Zaki Badr discusses cleaning problem in Giza

GMT 21:46 2017 Saturday ,14 January

Turkey arrests 60 businessmen for alleged Gulen ties

GMT 22:38 2017 Friday ,24 March

Abbas meets with Merkel in Berlin

GMT 09:02 2017 Monday ,27 March

Tunisian Premier Concludes Visit to Sudan

GMT 15:54 2017 Friday ,01 September

Attorney General Directs Prosecutors to inspect Prison

GMT 09:22 2017 Sunday ,31 December

HM King condoles with Afghanistan President

GMT 10:12 2016 Wednesday ,06 April

Strong dollar, mild weather shrink H&M profits

GMT 17:03 2016 Saturday ,24 December

7 police killed in attacks in Afghansitan

GMT 13:51 2017 Friday ,17 March

Israel denies Syria shot down a warplane

GMT 04:08 2017 Thursday ,05 January

Carbon tax can fund clean energy transition

GMT 19:27 2016 Wednesday ,14 September

Alstom to go ahead with plans to shut down Belfort plant
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday