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Retail and Openreach stand out at BT, margins rise -UPDATE

Thu, 01st Nov 2012 07:30

Telecommunications giant BT has bumped up its interim dividend after a solid second quarter which saw profits before tax grow.Adjusted revenue in the three months to the end of September was down 9% at £4,474m from £4,894m a year earlier, while underlying earnings before interest, tax, depreciation and amortisation (EBITDA) were virtually unchanged year-on-year at £1,497m.Adjusted profit before tax climbed 7% to £608m from £570m in the second quarter of the previous fiscal year, as costs fell and margins rose, compensating the hit to revenues from new regulation. Adjusted earnings per share also rose 7%, to 6.0p from 5.6p a year earlier. Net debt at the end of September was 9% larger at £9,037m compared to £8,317m at the end of September 2011. Despite this, the group felt confident enough to whack up the interim dividend by 15% to 3p from 2.6p at the halfway stage last year.BT Retail was the star performer, with second quarter EBITDA of £474m, up 7% from £445m the year before. This was despite revenue easing 3% to £1,791m from £1,853m the year before.BT Global Services, BT's offering to corporate customers, saw EBITDA slide 18% to £130m (2011 second quarter: £159m) on revenue that fell 13% to £1,757m (2011 Q2: £2,014m).BT Wholesale's EBITDA tumbled 8% to £280m from £305m the year before on revenue that retreated 12% to £861m (2011 Q2: £982m).The broadband part of BT's business, Openreach, saw EBITDA harden 3% to £582m from £567m the year before, despite revenue slipping 1% to £1,269m from £1,280m in the second quarter of 2011."We have delivered another solid quarter of growth in profit before tax despite the economic conditions and regulatory impacts. We continue to make significant investments in the future of our business and we are again accelerating our fibre roll-out. We now expect fibre to be available to two-thirds of UK premises during spring 2014, more than 18 months ahead of our original schedule, and we are recruiting more than 1,000 engineers in 2012 to help deliver this," declared Ian Livingston, Chief Executive of BT."Impressive delivery on costs," says NomuraThis is part of what analysts at Nomura are saying in a just issued research note on the telecommunications provider´s results out this morning: "The market's concerns that Global Services weakness, unhelpful regulation and general economic malaise would drip through to BT's profitability performance and affect its guidance targets have not materialised. Instead, BT posted margin expansion of 300 basis points -a basis point is one hundredth of a percentage point- in the second quarter, beating our EBITDA forecast by 1.3%, and maintained earnings before interest, taxes, depreciation and amortisation (EBITDA) and cash flow guidance. As fiscal year 2013 is now absorbing a £60m hit from ladder pricing regulation, stable guidance is effectively a 1% upgrade."
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IN BRIEF: BT confirms February start date for new CEO Kirkby

BT Group PLC - London-based telecommunications provider - Confirms Independent Non-Executive Director Allison Kirkby will succeed Philip Jansen as chief executive officer from February 1. She was named successor in July, with previous communication being that she would take over from Jansen around the end of this month at the latest. Jansen will be available to support the handover until the end of March, when BT's financial year 2024 ends.

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LONDON MARKET CLOSE: Stocks down amid disappointing manufacturing data

(Alliance News) - Stock prices in London closed lower on Tuesday, after the year was started with some disappointing data about the UK and US manufacturing sectors.

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LONDON MARKET MIDDAY: London stocks make largely soft start to 2024

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LONDON MARKET OPEN: New Year begins largely green amid slew of PMIs

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PRESS: Outgoing BT boss Jansen approached about being next WPP chair

(Alliance News) - WPP PLC has approached outgoing BT Group PLC chief Philip Jansen about becoming the advertising firm's next chair, Sky News reported on Monday.

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(Alliance News) - Stock prices in London are expected to open higher on Tuesday, reacting to a slight expansion in manufacturing activity in China and ahead of a slew of manufacturing PMI data including for the UK.

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BT chief Jansen approached about WPP chairmanship - Sky News

Jan 1 (Reuters) - BT Group's outgoing boss Philip Jansen has been approached about becoming the next chair of advertising group WPP, replacing Roberto Quarta, Sky News reported on Monday.

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1 Jan 2024 17:22

BT chief Jansen approached about WPP chairmanship - Sky News

Jan 1 (Reuters) - Philip Jansen, the outgoing BT Group boss, has been approached about becoming the next chairman of advertising group WPP, Sky News reported on Monday.

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28 Dec 2023 17:21

UK stocks subdued in thin holiday trade

FTSE 100, FTSE 250 flat

*

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28 Dec 2023 12:27

London midday: Stocks reverse gains to turn lower at lunchtime

(Sharecast News) - London's stock markets had turned negative by lunchtime on Thursday, reflecting a subdued trading environment during the typically quiet period between Christmas and New Year.

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28 Dec 2023 09:02

LONDON MARKET OPEN: China-exposed firms rise as stocks drift higher

(Alliance News) - Stock prices in London opened slightly higher on Thursday, with investors feeling quietly optimistic on the penultimate day of trading for 2023.

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London close: Stocks finish weaker amid uninspiring data

(Sharecast News) - London's stock markets ended the day in negative territory on Thursday, despite a rebound on Wall Street in early trading, as investors digested lacklustre government borrowing and retail sales data.

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UK dividends calendar - next 7 days

Friday 22 December 
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Ninety One PLC and Ltddividend payment date
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Schroder Real Estate Investment Trust Ltddividend payment date
SDCL Energy Efficiency Income Trust PLCdividend payment date
Tristel PLCdividend payment date
Monday 25 December 
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Tuesday 26 December 
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Wednesday 27 December 
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Thursday 28 December 
Babcock International Group PLCdividend payment date
BT Group PLCex-dividend payment date
Cerillion PLCex-dividend payment date
Develop North PLCdividend payment date
Focusrite PLCex-dividend payment date
Gore Street Energy Storage Fund PLCex-dividend payment date
Grainger PLCex-dividend payment date
Jet2 PLCex-dividend payment date
JPMorgan European Discovery Trust PLCex-dividend payment date
Lowland Investment Co PLCex-dividend payment date
North American Income Trust PLCex-dividend payment date
Schroder AsiaPacific Fund PLCex-dividend payment date
Schroder European Real Estate Investment Trust PLCex-dividend payment date
Schroder Income Growth Fund PLCex-dividend payment date
Troy Income & Growth Trust PLCex-dividend payment date
Ultimate Products PLCex-dividend payment date
Value & Indexed Property Income Trust PLCex-dividend payment date
  
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