BT Global Services Chief Resigns on Bad Earnings

BT Group PLC (BT) stocks plunged Friday on news that the UK operator will report dismal earnings.

Much of the blame fell on Global Services Division chief Francois Barrault, who now is resigning.

Research firm Ovum called Barrault “a formidable character” at BT who likely ran afoul of former accountant, CEO Ian Livingstone, when it comes to EBITDA performance. And what accounts for the fall in EBITDA performance?

“Unsurprisingly, the guidance here is somewhat thin,” wrote Richard Mahony, practice leader at Ovum, in an Oct. 31 client memo. “BT Global Services reports that cost-efficiency savings have been slow to come through and margins have continued to be eroded at the larger end of the managed services deals.”

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