BT profits fall £306m as its Italy scandal takes a toll

BT’s boss has apologised to savers who saw the value of their investments collapse following its Italian accounting scandal.

Gavin Patterson said he was ‘angry’ the company’s reputation had been damaged after it revealed a £530m hole in its finances. Markets were stunned on Tuesday by BT’s admission that ‘ inappropriate behaviour’ had caused it to exaggerate its profits in Italy.

The profit warning led to £8bn being wiped off the company’s share price – dealing a blow to BT’s army of almost one million small investors.

‘I am sorry, I apologise to Daily Mail readers,’ said Patterson. ‘ The integrity of the company has been challenged by a handful of individuals in Italy. Shareholders are clearly very unhappy about it.’

Patterson, 49, said the situation was ‘ under control’. The telecoms giant has sacked senior executives, and yesterday revealed its European boss Corrado Sciolla was leaving, as it ‘happened on his watch’.

However, Patterson, who earned £5.4m last year, remained tight lipped on whether he would be handing any of it back.

‘That will be a decision the remuneration committee will take,’ he said.

However, he sought to point towards a strong performance in the rest of the business.

The scandal drove a 37pc dent in BT’s third-quarter profit, falling to £526m from £832m a year earlier. But revenue over the period rose 32pc to £6.1bn.

BT was this week awarded the Daily Mail’s Wooden Spoon award for poor customer service.

‘It is frustrating to have won it again,’ Patterson said.

Shares closed up 0.2pc, or 0.7p at 302.8p.