BT Group announced the resignation of Gavin Patterson as the chief executive officer after the UK-based telecom operator said it will report a drop in revenue and profit in the coming years despite announcing a new corporate strategy.
BT Group chairman Jan du Plessis said the digital communication company needs a new leadership considering the revenue growth and projections.
Gavin Patterson was the CEO of BT Group from 2013. Vodafone, the main rival of BT in the UK telecom market and the world’s second largest telecom operator, recently announced the resignation of its CEO Vittorio Colao.
BT, which is struggling to improve revenue growth even after the acquisition of EE, will start a search to identify a new CEO.
BT under Gavin Patterson
To cut 13,000 jobs
To sell BT Tower
To miss revenue target
Cut profit target
Bought operator EE
Invested in broadcasting
Created more independence for Openreach
530-million pound fraud
Reduced customer complaints
The BT Board expects to have a successor in place during the second half of the year. Gavin Patterson, who spent 14 years at BT, will continue as the chief executive officer of BT till the group find a new person to head the troubled telecom giant.
Jan du Plessis, chairman of BT said: “The Board is supportive of the strategy recently set out by Gavin and his team. The broader reaction to our recent results announcement has though demonstrated to Gavin and me that there is a need for a change of leadership to deliver this strategy.”
The strategy includes the divestment of BT Group’s iconic tower in the U.K. to cut down its expenses.
BT Group, which generates from global enterprises, UK mobile and wholesale business, said its revenue fell 3 percent to £5.967 billion in Q4 fiscal 2017-18.
BT Group has projected a 2 percent drop in revenue in financial year 2018-19 after posting 1 percent dip in revenue to £23.723 billion during fiscal 2017-18. BT aims to invest £3.7 billion towards Capex during the current financial year aimed to expand broadband and 4G coverage.
