BT is axing 4,000 jobs and has appointed a new CEO for its troubled Global Services arm as it announced its full-year results.

The operator revealed in January that its BT Italia business, which falls under the remit of Global Services, had been overstating profits for several years.

Bas Burger, President of BT in the Americas, will take charge of the Global Services business, replacing Luis Alvarez, from 1 June.

His in-tray will be dominated by a two-year restructuring project that aims to create a "simpler and leaner" operating model.

As well as Global Services, Group Functions and its Technology, Services and Operations businesses will also be restructured over the next two years, with an aim of saving £300 million over the period.

Job cuts will mainly come from managerial and back office roles.

Drama at Global Services, coupled with the restructure, overshadowed BT's 2016/17 results, where a sales increase of 27 percent to £24.1 billion was not enough to offset a 19 percent slump in profit before tax to £2.35 billion.

Reasons to be cheerful for BT included the performance of EE, which saw revenue during its fourth quarter increase by 50 percent to £1.26 billion and EBITDA up 83 percent to £316 million.

Its mobile base now sits at 30 million, with 192,000 contract customers added in the fourth quarter and 18.6 million on 4G.

BT added 211,000 fibre customers during the fourth quarter taking its base to 4.9 million.

Overall, its broadband base grew by 82,000 to 20.4 million.

Its consumer business saw EBITDA drop 18 percent to £261 million during the fourth quarter, with sales nudging up four percent to £1.25 billion.

The drop in profits was blamed on its contract to show Premier League games, investment in new customer service roles and an increased spend on mobile handsets.

Business and Public Sector was another earnings disappointment in the three months to the end of March, down 14 percent to £391 million, with sales down two percent to £1.22 billion.

Its Openreach arm, which saw fourth quarter sales down one percent to £1.29 billion and EBITDA down three percent to £695 million, said it was opening a consultation into how the company could better deliver universal broadband coverage.

In another symptom of BT's tough year, Openreach has been fined and warned it faces price caps if it does not increase competition.

[Read more: Sky, TalkTalk, Vodafone welcome legal separation of BT, Openreach]

Following the results, BT announced Patterson and outgoing Group Finance Director Tony Chanmugam would not be receiving their annual bonus this year.

Both executives said they would have turned down the award if it had been offered.

BT also warned the year ahead would involve broadly flat EBITDA of between £7.5 and £7.6 billion, compared to £7.65 billion for its latest financial year, and flat revenues.

CEO Patterson said: "This has been a challenging year for BT. We’ve faced headwinds in the UK public sector and international corporate markets and must learn from what we found in our Italian business."

He added: "Learning from the challenges of this year will make BT a stronger company for the future."

Paolo Pescatore, VP, Mulitplay and Media, CCS Insight, said: "These latest results are not stellar given the challenging end to its financial year. Despite ongoing concerns, BT Consumer and more so EE continues to stand out from the other business units.”

He said while EE was a highlight of the business, it could result in challenges ahead.

“Latest results from rivals underline the competitive nature of the UK multiplay market and the headwinds’ that lie ahead," added Pescatore.

"Moving forward BT must focus efforts on other content areas to make a serious move on its main competitor, Sky. This may involve decoupling its TV service from BT broadband.

"And it still needs to make some decisions as to the future viability of managing two competing but significantly overlapping lines of businesses, BT Consumer and EE.”

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