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LONDON, May 7 (Reuters) - Britain's biggest telecoms group
BT has suspended its dividend until 2021/22 and pulled
its financial outlook in response to the COVID-19 pandemic.
On the same day that rivals Telefonica and Liberty
Global announced the merger of their British units to
build a stronger challenger, BT also set out plans for a new
5-year programme to modernise the business.
The new programme will cost 1.3 billion pounds to achieve
and will deliver annualised gross benefits of 2 billion pounds
by March 2025 as it switches off many legacy progammes and uses
new technologies to move faster.
"Of course, Covid-19 is affecting our business, but the
full impact will only become clearer as the economic
consequences unfold over the next 12 months," Chief Executive
Philip Jansen said. "Due to Covid-19, BT is not providing
guidance for 2020/21, at this time."
(Reporting by Kate Holton; editing by Guy Faulconbridge)