Verwaayen to step down as BT CEO
08 April 2008
Verwaayen to step down as BT CEO
UK incumbent BT said Tuesday that Ben Verwaayen is to step down as chief executive of BT Group on June 1, after six years in the job.
Verwaayen, who is credited with BT's aggressive expansion into broadband, Global Services and the creation of Openreach, is to be succeeded by Ian Livingston, currently chief executive of BT Retail.
Livingston's current role will be filled by Gavin Patterson, currently group managing director of BT's consumer division.
In February, BT reported that profits for the quarter to end-December fell 30 per cent year on year to £447m. Group revenues for the same period were flat at £5.1bn, with the company hit by restructuring costs and an 11 per cent drop in sales at the Wholesale division.
Verwaayen called the results, "another solid performance," while Ovum analyst, Mike Cansfield, pointed out that, "The answer to why we are disappointed is all in comparisons. If we look back 12 months, BT revenues increased in the comparable quarter by 5 per cent and profit before taxation and specific items increased by 13.1 per cent. "The only conclusion that you can draw is that the growth in BTs performance is slowing," he said.
Research analysts at Dresdner Kleinwort note that BT's recent operating performance has been somewhat disappointing and therefore some investors may be worried about the timing. "Ian should bring a more direct and focused style in comparison to Ben's more visionary one. In the current environment this change in style should be positive," the analysts said. "Ian Livingston as head of Retail established a good reputation. Retail has performed well since his appointment in '05, prior to this he was group finance director."
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