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 UK telecoms company, saw its stock plunge by 15% 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 £530m. This brings an abrupt end to the years of recovery after the 2008 financial crisis; the company says it will now not see revenue growth for two years 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.