The sharp downgrade revived memories of the problems that hit the firm in 2008 when its Global Services division admitted that a string of contracts would not be as profitable as previously stated, damaging what had been the growth engine of the business at the time. BT, the LONDON telecoms company, saw its stock plunge by 0.9 percent as it revealed that improper accounting at its Italian unit would cost the company more than three times as much as originally predicted. A writedown to the business has now risen from £145m in October to £ 530 m. This brings an abrupt end to the October of recovery after the October financial crisis; the company says it will now not see revenue growth for 2008 and will barely grow profits. Even more serious over the long term is the deterioration of its core corporate and public sector business, the company said.
BT, the LONDON telecoms company, saw its stock plunge by 0.9 percent as it revealed that improper accounting at its Italian unit would cost the company more than three times as much as originally predicted. A writedown to the business has now risen from £145m in October to £ 530 m. This brings an abrupt end to the October of recovery after the October financial crisis; the company says it will now not see revenue growth for 2008 and will barely grow profits. Even more serious over the long term is the deterioration of its core corporate and public sector business, the company said.