BT experienced an 81 per cent drop in pre-tax profits in the final three months of last year, it has been revealed.
The telecoms giant said its profits stood at £113 million in the quarter to December, down from £601 million in the corresponding period in 2007.
Despite revenue being slightly up year-on-year, BT incurred a one-off charge of £336 million over financial and contract reviews at BT Global Services.
"Three of our businesses performed ahead of expectations in the quarter and the group, excluding Global Services, delivered the best year on year profit growth for five years," said chief executive Ian Livingston.
"However, as previously announced, the group results have been severely impacted by the performance of our Global Services division."
Mr Livingston added: "With our focus on improving the performance of Global Services, continued cost savings and control on [capital expenditures] across the group, we expect group free cash flow, before any pension deficit payments, to be over £1 billion next year."
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