BT has reported a 38 percent fall in the value of its order intake by its Global Services outsourcing division in the first quarter.
Total order intake for Q1 2014/15 stood at £1.1 billion, BT said, adding that the decline was due to a large contract renewal with Swiss bank Credit Suisse the previous year, and a smaller number of contracts coming up for renewal in the first quarter.
On a rolling 12-month basis, the order intake was £6.3 billion, down eight percent compared with the previous 12 months.
Meanwhile, BT Global Services revenue stood at £1.65 billion for the first quarter to 30 June, down six percent compared with the same period in 2013 (£1.75 billion).
“As expected, public sector revenue in the UK declined due to lower levels of expenditure in the sector and our focus on only pursuing business that generates economic value,” BT said in its first quarter results today.
“This decline was partially offset by an increase in underlying revenue in the high-growth regions of Asia Pacific, Latin America, Turkey and the Middle East and Africa.”
Despite the revenue decline, BT Global Services signed a number of major new contracts in the UK and America.
These include a networking and IT services contract with the Security Industry Authority, the regulatory and licensing body for the private security industry in the UK and a contract with Smart DCC, a subsidiary of Capita, to deliver a security solution for the UK smart metering programme.
In the US, it extended an existing contract with MasterCard for global network services.
As a group, BT reported pre-tax profit of £638 million in the first quarter, up seven percent from £595 million in the same period last year.
In June, The De Beers Group signed a six-year, £22 million global networking and IT services contract with BT to more efficiently link up its diamond mining and administration sites.