16th Nov 2022 12:23
(Alliance News) - BT PLC on Wednesday reported it benefited from an effective negative tax rate in its first financial half, benefiting from its tax-exempt BT Sport sale.
The telecommunications provider said in the six months to September 30, pre-tax profit fell 9.7% to GBP968 million from GBP1.07 billion a year prior. However, post-tax profit surged to GBP1.03 billion from GBP494 million.
"The effective tax rate on reported profit was negative 6.4% versus positive 53.9% in the first half-year of financial 2021, reflecting a tax credit recorded against an accounting profit, primarily driven by the impact of the super deduction and the fact that the gain on disposal of BT Sport is exempt from UK tax," BT explained.
In May, BT agreed to a deal with Warner Bros Discovery Inc which would see BT Sport and Eurosport combine. Once complete, the production and operational assets of BT Sport would become a wholly owned subsidiary of Warner Bros. BT would get GBP93 million from Warner Bros and up to GBP540 million by way of an earn-out.
Meanwhile, BT's half-year revenue grew 2.8% to GBP4.99 billion from GBP4.86 billion. Operating costs fell by 2.2% to GBP3.70 billion from GBP3.78 billion.
BT shares fell 2.2% to 120.05 pence each in London on Wednesday afternoon.
By Tom Budszus; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
BT