Jan 27, 2017
BT Italian scandal triggers steep fall in profits
The accounting scandal at BT's Italian division has triggered a steep fall in profit at the telecoms company in the third quarter and overshadowed progress across its broader business. Earnings at BT's Global Services division slumped almost 70 per cent in the quarter as the company reset numbers for BT Italia, which sits within the unit. BT expects the Italian issues to cost £530m as it unwinds inappropriate loans taken by the unit's previous management team. BT confirmed on Friday that Corrado Sciolla, head of Europe for BT and a former BT Italia chief executive, would leave the company, with his responsibilities passed to Luis Alvarez, head of Global Services. Openreach, the networking division that until the BT Italia scandal was in the eye of the storm due to regulatory pressure, added almost half a million lines.
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