BT’s share price fell by almost 20% last Tuesday, after an update on an accounting scandal in its Italian business led to a profit warning, and the resignation of the head of its European operations. BT admitted last October that it had uncovered “historical accounting errors”. It wrote down £145m, and most of the Italian unit’s management were ushered out of the business.
But this week BT said that the extent and complexity of “inappropriate behaviour” was “far greater than previously identified”. BT increased its writedown to £530m, and said revenue would be down by £200m a year for [...]