(Bloomberg) — BT Group Plc’s sales grew for the first time since 2017 after customers signed up to fiber optic connections and the London-based telecom group raised tariff prices above inflation earlier in the year.
- Revenue in the first quarter rose 1% to £5.13 billion ($6.25 billion), roughly in line with £5.09 billion-pound average estimate of analysts surveyed by Bloomberg.
- BT posted adjusted earnings of £1.9 billion before interest, tax, depreciation and amortization, in line with analyst estimates.
Key Insights
- The fiber optic rollout and customer connections are “both ahead of our own expectations,” Chief Executive Officer Philip Jansen said, while flagging challenges in the Enterprise division.
- BT said it’s got contingency plans in place for strikes from its biggest union due Friday and Monday, as workers demand a bigger pay increase to keep up with inflation.
- BT shares took a hit earlier in July after the news that chief rival Virgin Media O2 — owned by Liberty Global Plc and Telefonica SA — was in discussions about potentially acquiring major customer TalkTalk Telecom Group Ltd.
Market Context
- BT shares have risen 3.9% in the year to Thursday versus a 0.5% fall in the FTSE 100 Index.
- Of the 25 analysts surveyed by Bloomberg, 14 rate the stock Buy, 8 Hold and 3 Sell.
Get More
- Statement
- Virgin Media O2 in Discussions to Acquire Rival TalkTalk
- BT CEO Faces Furious Staff in Town Hall, Says He Can’t Boost Pay
- BT Workers Vote in Favor of Firm’s Biggest Strike Since 1987
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